9  All speeches are available online at www.bankofengland.co.uk/news/speeches  9  Equally important, utilising ML and AI to analyse the data could free up supervisors’ time to add the greatest value where humans excel over machines: judgement. That is why the Bank is today launching a Review to explore a transformation of the hosting and use of regulatory data over the next decade. This review will be conducted in close consultation with banks, insurers and financial market infrastructures. We are also embarking on proofs of concepts, in collaboration with firms and the tech sector, to test how we can automatically extract regulatory firm data. And we will identify and implement near term improvements in how we use data, including greater use of AI and ML to interpret the information. Support the transition to a carbon-neutral economy My final example of how the new finance can serve the new economy is the most fundamental. Indeed, it is existential. This year, the threats from climate change spurred demonstrations across the country and prompted Parliament to declare a ‘climate emergency’. In response, last week, the Prime Minister announced legislation that would make the UK the first G7 country to commit to net zero emissions by 2050. The changes required to achieve this are enormous. Carbon emissions will have to decline by 45% from 2010 levels over the next decade.26 This will require a massive reallocation of capital creating unprecedented risks and opportunities.
The last decade has seen strong global economic growth, while, at the same time, output volatility have dropped. In practice, two paths have emerged for achieving price stability. One way is through a fixed exchange rate regime, such as a currency board. Under such an arrangement, a country simply imports the monetary policy of a country with a highly credible low-inflation regime. This path has emerged as the weapon of choice of many emerging economies. These countries want to achieve price stability, while avoiding the costly deflations which otherwise might be necessary to anchor inflation expectations. The other way is through an independent central bank with a mandate to maintain price stability. This mandate is often formulated in terms of an inflation target. The inflation target operated by the Swedish Riksbank stipulates that consumer price inflation should be 2 per cent per year, with a tolerance interval of plus/minus 1 percentage point. For all practical purposes this arrangement is close to what is found in, for example, the UK, Australia, Norway and the Eurozone. It should also be said that there is a general consensus that the inflation target in Sweden has been a successful one. Financial stability As I mentioned earlier, many central banks today also have an objective to promote financial stability. While there is close to universal agreement on what price stability means, there has yet to emerge, some attempts none withstanding, a consensus on a working definition of  BIS Review 101/2007  1  financial stability.