Modelled on the Independent Evaluation Office of the IMF, we will create a unit to support this, with a director reporting to the Chairman of the Oversight Committee. It is not just our governance but also our commitment to transparency and openness that must be further enhanced. Transparency and openness are central not just to our legitimacy to perform these new tasks on behalf of the citizens of the United Kingdom. They are also central to our effectiveness in performing them. Just as Governor King described in his Mais Lecture 9 years ago, openness about what policy is seeking to achieve can make it more effective.21 In monetary policy, that helps to anchor inflation expectations and to support countercyclical movements in the policy setting. To that end, we have introduced forward guidance to reduce uncertainty about the way monetary policy will be set as the recovery gains pace. Our Inflation Report has evolved in the past year to contain more information about the key judgements underlying our forecasts and to widen the set of economic indicators for which we publish forecasts to include the labour market, components of GDP, the world economy and household incomes and saving. It will evolve further, including using our new organisational structure to draw stronger distinctions between staff and MPC forecasts. We will also review the case for releasing transcripts of our policy meetings after some years, and report publicly to the Oversight and Treasury Select Committees on the outcome of that review.
Thus, we see that the Libor cannot remain at 0.25% indefinitely. However, as our forecast also shows, it would not be advisable to increase the Libor now since the very weak inflation rates expected in 2010 (0.4%) and 2011 (0.3%) indicate that the deflation risk has not completely disappeared. We continue to use an inflation forecast to guide our decisions. In this way, we will ensure that the unconventional measures currently in force do not compromise medium and longterm price stability.