So reductions in Bank Rate are less likely to have undesirable effects on the supply of credit the UK economy than previously judged by the MPC. Some day we will also need to exit QE (though that will not come at least until Bank Rate has reached a level from which it could be materially cut were more stimulus required). Such a decision will be taken in pursuit of our inflation target. But I can assure you that this will be done in an orderly and clearly communicated fashion to avoid undue disruption in financial markets, including through close coordination with the Debt Management Office. 4. Expanding and clarifying liquidity insurance  How we use the balance sheet also needed to evolve to meet our financial stability objectives over the course of the financial crisis. In the decades prior to the crisis, the need for the Bank to provide liquidity support was infrequent and usually on a small scale. 2 As such, in 2007 the Bank had a relatively limited list of institutions that had access to its balance sheet through what is called the Sterling Monetary Framework (SMF), along with a conservative list of collateral acceptable in its published facilities. And there was little clarity about the circumstances under which the Bank would extend liquidity support for financial stability purposes.
In particular, a recent report by Lord Grabiner indicated concern that the Bank’s systems and controls have not always kept pace with the changing role of the Bank. Today we are publishing the results of a thorough Review 11 of our MI function. From it I would highlight three key points that will remove some unconstructive ambiguities around the gathering of MI: •  First the Bank has published a “Market Intelligence Charter” which explains in clear language the terms of the Bank’s engagement with market participants, and its rationale for gathering MI. •  Second the Bank is strengthening the set of policies (including escalation, recording and compliance policies) that govern MI, and expanding the training accompanying those policies. •  Third, the Bank will establish a Bankwide executive level committee to oversee and agree the priorities for the Bank’s MI programme to ensure it retains flexibility, focus, and relevance to the policy challenges of today and tomorrow. In addition, a dedicated MI Division will co-ordinate, synthesise and disseminate MI around the bank. The ability of the Bank’s MI function to provide information to senior policymakers over the past 8 years, as the first waves of the crisis first rushed onto the Bank’s doorstep, and then as solutions flowed back out across the system, has been vital to our effectiveness. The staff who do this work are a credit to the institution.