A particular benefit was that we were able to access deeper and private information not available to analysts to run the tests; the resultant reports and briefing sessions are always attended with great interest by the market. Charlotte Gerken Executive Director, Insurance Supervision  Annex  ©2023 Bank of England
The prominent role of money is signalled by the announcement of a reference value for the annual rate of growth of the broad monetary aggregate M3. This reference value represents a visible public commitment to analysing and explaining monetary developments and their implications for price stability in detail. In December 2000, the Governing Council of the ECB reconfirmed the reference value of 4 1/2% annual growth. This rate should be consistent with price stability in the medium term. While the reference value plays an important role in monetary analysis, the assessment of the first pillar goes beyond the evaluation of the deviation of M3 growth from the reference value. It encompasses a variety of approaches which assign a central role to money because of the ultimately monetary nature of inflation, as well as a detailed analysis of the components and counterparts of M3. Thus, an in-depth analysis of the overall liquidity conditions in the euro area is provided. BIS Review 10/2001  1  Despite broad consensus on the fact that inflation is ultimately a monetary phenomenon, the assessment of monetary developments alone does not give an accurate picture of the state of the economy and of the potential risks to price stability. Therefore, for a robust strategy, it is useful to analyse additional indicators relevant for future price stability and to combine them under a second pillar.