past rises in bank rate will need to slow domestic demand. and inflation expectations will need to fall back in line with the 2 % target. the monetary policy committee will be watching closely indicators of capacity pressures, pricing intentions and inflation expectations. if these indicators remain elevated, the mpc may need to take further action. there is no simple or self - evident answer to the question of what path of interest rates will be necessary to bring inflation back to the 2 % target and keep it there. by now you must be asking your own “ why? ” question – why is he keeping us from such a splendid dinner? so i will not detain you. i have tried to explain this evening why interest rates have gone up. each month we try to spot the shocks, evaluate their implications for inflation, and set interest rates to meet the 2 % target. we do that to provide a backdrop of macroeconomic stability so that you can focus on the really important questions for your businesses. why is that product selling better than this one? why is my competitor changing his prices? and, most important, why did the wallabies run the welsh defence ragged in brisbane, where wales lost by almost as big a margin as england did to south africa? i don ’ t have the answers to those questions. but, of one thing i can assure you, in terms of the economy we will never stop asking “ why? ”

order of the day ; eg : subprimes, $ 100 per barrel of oil, global terrorism, etc. etc. in that scenario, management accountants would need to be consciously trained to deal with, and manage emerging new issues and risks, in addition to the normal duties undertaken by the typical accountant. how will all this affect the management accountant? it is likely that even in this turbulent scenario, the core - training of the management accountant may still be relevant. however, supplementary training may need to be constantly kept up to date, in order that the management accountant has a meaningful impact on the organization. this would be made even more difficult because issues, problems and responses are no longer of a local nature. in most cases, responses need to be regional or even international. if we act together we can pool our resources, learn from our experiences and be ready for the unknown. that is what we need to be doing. in that sense, the management accountants of the world, seem to be on the right track. we say, we wish to be seen as strategists and as performance management specialists. if so, what should we do? ( a ) as far as education and training is concerned, in addition to all what we learn now, a greater focus in communication and human resource management may be necessary. these new skills would be the tools to ; ( i ) manage better, ( ii ) perform better, and ( iii ) deliver outputs better. ( b ) develop skills in marketing and understand the importance and the specialist nature of the subject. ( c ) develop the proper managerial attitude which focuses on outputs rather than inputs. if a person is to focus on “ outputs ” a few important steps would need to enter his work and life. these are very well enunciated in the 2500 year old teachings of lord buddha. usually, we seek the guidance of this great teacher in spiritual matters. but in this instance, we could benefit by his teaching which is very relevant, in my view, to the business attitude of the re - positioned management accountant. this specific teaching which even today could serve as a simple “ to do list ” for ourselves to deliver outputs, may be set out as 6 point doctrine – first, arambhaka dhathu. that is, the action should start. ideas, proposals, plans, strategies are of no use, unless they are converted into action. discussions are of no value unless it leads to action. what is tangible