They will help us build the trust that is crucial to delivering our mission. And they will help us merit that trust by making us more effective. By reflecting diversity and choosing inclusion, we will ensure we are doing all that we can to promote the good of the people of the United Kingdom. 9  All speeches are available online at www.bankofengland.co.uk/speeches  9  ENDNOTES i  Putnam, R (1993), “What makes democracy work?” National Civic Review. Putnam finds that cities, regions and countries with more trusting people tend to have better working democratic institutions. See also OECD (2009), “Fostering diversity in the public service”, October. ii See e.g. Noland, M, Moran, T, and Kotschwar, B (2016), “Is Gender Diversity Profitable? Evidence from a Global Survey”, working paper 16-3 Peterson Institute for International Economics, February. iii Page, S E (2007), “The difference. How the power of diversity creates better groups, firms, schools, and societies”, Princeton University Press. Page describes four elements of cognitive diversity: perspectives, the way we see and present problems and solutions; interpretations, the way we explain our perspective; heuristics, the way we seek to rationalise and solve problems; and predictive models, the way we infer cause and effect. iv See e.g. Riordan C M (2015), “Diversity is useless without inclusivity”, Harvard Business Review, August.
Frankly, it’s too early to tell: we know the final rate of inflation, 2%; but we don’t know yet the « terminal interest rate », or the policy rates that will ensure a timely return of inflation to our target, while seeing no reasons for increased expectations on these. Let me rather give some light on the first part of the journey, the normalisation till neutral rate; for sure it’s unobservable, but this one can be estimated, in the euro area at below or close to 2% according to me. I sometimes use a simple metaphor: as long as it is about lifting off the accelerator, we have to act for sure, in a determined but orderly way, and we should be there by the end of the year. Afterwards, the question could come of pressing the brake, and tightening if needed: but this part of the journey remains today an open question, and will deserve further assessment and reflection, in due time. Let me only stress one last and obvious point of yesterday’s decision: it marks the return of interest rates in positive territory. This historical step brings with it multiple dimensions that need to be revisited: on our operational framework, on our TLTRO operations, on our remuneration mechanisms of bank’s reserves. This is a matter that, as Christine Lagarde said yesterday, we will take up without delay. May I add that with a long view, monetary policy cannot be the only game in town?