In France, credit to the private sector continued to advance at a sustained pace, posting a year-on-year increase of 9.3% in October. The annual growth rate of total domestic debt was 5.7% in October. In the course of the year, the various components of the second pillar signalled upside risks to price stability. This was true for the indicators for supply and labour markets, the continuing rise in oil prices and the protracted depreciation in the euro’s exchange rate, which have exerted or continue to exert upward pressure on import, production and consumer prices. As regards the exchange rate of the euro, which is an important monetary policy indicator, both the Monetary Policy Council and the ECB Governing Council are convinced that the external value of the euro does not reflect the euro area’s favourable situation and future prospects. This sentiment is shared by the Eurogroup, which agreed with the European Central Bank in Versailles that "a strong euro is in the interests of Europe". This phrase is the most concise and clear statement of Europe’s position with respect to the external value of the euro. Moreover, the G7 also concurs with the Eurosystem’s analysis. On 23 September, following the concerted intervention on foreign exchange markets on 22 September, the G7 expressed "the shared concern of the Finance Ministers and the Governors about the potential implications of recent movements in the euro for the world economy". Financial stability In Europe, price stability is the statutory responsibility of the central banks, that is, the Eurosystem.
We are also considering what a layer of the framework for ‘mid-tier’ firms might look like, and are currently undertaking some engagement with relevant firms to understand where they see scope for simplification of the prudential regime. Other Priorities Before I close, I did want to note our ongoing focus on Diversity & Inclusion in the sector. This is an important area which helps enhance governance, decision-making and risk management in firms, as well as the services you provide your members. We plan a consultation paper later this year, building upon the joint 2021 PRA/FCA discussion paper18, setting out proposals to introduce a new regulatory framework on diversity, equity and inclusion in the financial sector. I strongly encourage you to engage with those proposals once they are published. In Conclusion Let me briefly sum up. I’ve stressed today the important role that mutuals play in providing your services to a diverse range of households and business right across the UK. It’s vital those services are 16 CP4/23 - The Strong and Simple Framework: Liquidity and Disclosure requirements for Simpler-  regime Firms | Bank of England 17 FS1/21 – ‘Responses to DP1/21 ‘A strong and simple prudential framework for non-systemic banks and building societies’ | Bank of England 18 DP2/21 – Diversity and inclusion in the financial sector – working together to drive change | Bank of England  Bank of England  Page 9  underpinned by resilient firms.