Surveys suggest this message was understood by a majority of companies and 46  some households. By allaying fears about too-rapid a rise in rates, it is likely to have encouraged spending  and supported the economy. When the MPC did come to raise interest rates, in November 2017 and again in August 2018, it is interesting to see how well these were understood by companies and households. Around three-quarters of households, and around 90% of companies, had expected a rise in rates within the year ahead in surveys held immediately prior to the decisions. Simple, directional forward guidance on monetary policy appears, for this non-expert audience who comprise most of the spending in the economy, to have been effective. A second monetary policy example comes from the Bank’s quarterly Inflation Report. This was first produced over 25 years ago, as part of the first wave of the transparency revolution. It is a long and technical document, with language requiring at least 13-14 years of education to understand. 47  The  complexity of its language meant the Report was probably only accessible to around 10% of the population. 45  Bank of England (2013) provides a useful summary of concepts and issues relating to forward guidance; see Carney (2018) for a more recent discussion. 46 Carney (2018). 47 Haldane (2017a). 20  All speeches are available online at www.bankofengland.co.uk/speeches  20  In November 2017, the Bank began publishing two simpler, “layered” versions of its Report.
(c)  A Distributed Architecture  Central banks historically have tended to be, well, centralised. But in a world where understanding of the economy is often localised and trust is built on a distributed basis, a centralised infrastructure may be far from ideal. What is needed instead is a distributed architecture for engagement. In response, central banks have over time changed their structures and further change seems likely. The Bank of England has had a network of Agents around the UK for around 90 years. Today, the Bank’s twelve regional agencies cover all corners of the UK, with an extensive network that generates around 9,000 meetings with company contacts each year. This is a valuable source of intelligence on the economy and financial system. Indeed, I would say it is increasingly valuable. It provides colour and context to accompany our data and models. It offers folk wisdom, the wisdom of the company crowd. But companies are only one crowd among many. Companies are an important lens on the economy, but far from being the only one. Reflecting that, the Bank has recently sought stronger connections with some other crowds, crowds with a different lens on the economy with which it has perhaps had less contact historically – trades unions, charities, community organisations and the like. For more than a year, I have augmented those Agents’ efforts with my own “Townhall” meetings across the UK.