There will be a clear link between the forecasts and the monetary policy considerations made directly in the report in that the forecasts are based on an interest rate path chosen by the Executive Board. A more detailed account of the discussion held in connection with the decision on the level of the interest rate that will apply until the next monetary policy meeting will be included in the minutes of the meeting, which will be published as usual around two weeks after the meeting. In addition, the arrangement of the report will be altered with the aim of becoming even clearer and more efficient in our communication. The purpose is to make it easier for external parties to follow, understand and assess our monetary policy. The report will also have a new, and hopefully more readable, layout. The routines for publishing the report will also be changed slightly. The report will be published, as usual, on the Riksbank’s website the day following the monetary policy meeting, at 9.30 a.m. However, the printed version will be published slightly later, as the report will now contain information on the monetary policy decision and must therefore go to print after the Executive Board meeting. Concluding remarks As I mentioned at the beginning, we at the Riksbank are constantly working on improving our communication and the bases for making our monetary policy decisions. The fact that we are now going to publish our own forecast for the repo rate is an important step in this process.
But banks will need to be careful that this process is handled with tact and sensitivity. Otherwise, they may be open to accusations from sections of the community that they are neglecting their social responsibility by curtailing or increasing the cost of basic banking services to the economically disadvantaged. This was certainly the accusation made against the Australian banks after deregulation there. A further aspect is that the possibility of higher and more extensive charges for banking services will make it all the more important for the banks to deliver sufficient information to their customers about these charges. Let me clarify at this point the HKMA’s attitude to ethical matters and particularly the issue of “fairness” to customers. Our main responsibility under the Banking Ordinance is to promote the general stability and effective working of the banking system. In common with banking regulators in other countries, we interpret this to mean that our principal concern should be to determine that individual banks are financially sound and prudently managed. The aim is to reduce the risk of bank failure that would result in depositors losing money and threaten the stability of the banking system as a whole. We concentrate therefore on checking that the banks have adequate capital and liquidity and effective management and internal controls. However, this is not all that we do.