It is important after key milestones have been delivered to take the time to reflect on how far we’ve come, but it is equally, if not more, important that we do not lose sight of the future, the benefits to be leveraged and the work that remains. Good progress has been made so far, but there is much left to do. And of course there will be challenges for firms as we continue along the course, navigating complexities around the implications of financial technology and EU withdrawal. Seeing this journey through will require ongoing focus, care and attention from all involved. But I am confident that collectively we will get there. 7  See: A blueprint for a new RTGS service for the United Kingdom. This includes having the operational capacity to operate a settlement account, and demonstrating compliance with a comprehensive risk management framework development with the Financial Conduct Authority, HM Treasury, HM Revenue & Customs, the PSR and the payment system operators. 8  7  All speeches are available online at www.bankofengland.co.uk/speeches  7
This ensures that governments continue to correct economic weaknesses while the ECB is active. The involvement of the IMF, with its unparalleled track record in monitoring adjustment programmes would be an additional safeguard. The consequences of the ECB’s actions So what are the likely consequences of the ECB’s actions? Before announcing the OMT programme, we considered very carefully the possible risks – and we designed our operations to minimise them. But I am aware that some observers in this country remain concerned about the potential impact of this policy. I would therefore like to use this opportunity to go through those concerns – one by one – and explain our views. First, OMTs will not lead to disguised financing of governments. We have specifically designed our interventions to avoid this. They will take place solely on secondary markets, where bonds that have already been issued are traded. If interventions take place, they will involve buying government debt from investors, not from governments. All this is fully consistent with the Treaty’s prohibition on monetary financing. Moreover, they will focus on shorter maturities and leave room for market discipline. Second, OMTs will not compromise the independence of the ECB. The ECB will continue to take all decisions related to OMTs in full independence. It will decide whether to intervene based on its own assessment of monetary policy transmission and with the aim of safeguarding price stability. The fact that governments have to comply with conditionality will actually protect our independence.