the essence because of both the rapid pace of global change and the arc of a leader ’ s personal capital within their organisation. as the global head of mckinsey dominic barton observes, “ great leaders set a clear agenda early on and then act on it fast. they never have as much power or impact as when they first take on the role. ” this is part of the bank ’ s vision 2020 strategic plan launched in 2017, which aims to overhaul ‘ how we work ’ and ‘ how we communicate ’. see : https : / / www. bankofengland. co. uk / about / governance - and - funding barton, d ( 2017 ) p. 3 all speeches are available online at www. bankofengland. co. uk / speeches the third thing leaders do is to catalyse action. specific catalysts vary with an organisation ’ s structure and culture, but in all cases they require the full and visible commitment of the leader before devolving power to colleagues. this means practicing what you preach, as general colin powell advised : “ you can issue all the memos you want and give all the motivational speeches … but if the rest of the people in your organisation don ’ t see you putting forth your best effort every single day, they won ’ t either. ” catalysing action means listening to and empowering colleagues, who are more likely to follow a new direction if they have been consulted during its development. and it then means getting out of the way. as teddy roosevelt said, “ the best executive is the one who has sense enough to pick good people to do what [ the leader ] wants done, and self - restraint enough to keep from meddling with them while they do it. ” such delegation has traditionally been an anathema for central banks. but when following the crisis the bank of england doubled in size and tripled in responsibilities, we knew our rigid hierarchy had to change. to start that process, we surveyed widely and met with colleagues across the bank in order to develop our new strategy. we then slashed the number of internal committees by two thirds and instituted a policy that the author of every analysis had to be in the room whenever it was discussed. we ’ re now devolving decisions to the right level, changing the way we meet and making the bank more permeable to the outside world by multiplying our channels of communications and the number of our spokespeople. finding and developing the right people

gabriel makhlouf : publication of the financial stability review 2023 : 2 opening remarks by mr gabriel makhlouf, governor of the central bank of ireland, on the publication of the financial stability review 2023 : 2, dublin, 23 november 2023. * * * welcome to the central bank of ireland for the release of the second financial stability review of 2023. our assessment of the financial stability outlook continues to be shaped by the ongoing adjustment of the global economy to higher interest rates. since our last review in june, inflation has fallen in many economies, but we remain some way from our target. we have not yet seen the full extent of the lagged effect of monetary policy actions on borrower finances or economic demand. in a setting where long - term interest rates have risen since june, despite some moderation in recent weeks, global financial markets remain vulnerable to bouts of volatility. the global economy also remains vulnerable to further shocks. we have already seen a pandemic and a war in europe. humility is therefore a prerequisite to good policymaking. geopolitical tensions, signs of fragmentation of the global economy and extreme weather events are three potential sources of future shocks with consequences for policy. against this backdrop, it is imperative that we maintain resilience while we have scope to do so. what does this mean for an open economy like ireland? this question is top of mind for us at the central bank. the irish economy has continued to expand since the last review, albeit at a slowing pace. the labour market remains tight, with strong wage growth. however, we must also acknowledge that a range of previously - flagged risks are now closer to materialising than in june. commercial real estate prices have now fallen more than 20 per cent since mid - 2020, while slowing exports and corporation tax receipts may mark the beginnings of a weaker global economy feeding its way through to ireland. the lagged effect of monetary policy actions remains a source of uncertainty for the domestic economy, as the financial system continues to pass through higher interest rates gradually to borrowers and depositors. despite these emerging signals of risks crystallising, the domestic household, business and banking sectors continue to demonstrate resilience in aggregate, with a strong labour market being a key factor. low levels of debt, prudent and appropriate macroprudential policy, and the fixed borrowing costs for many are also supporting resilience to the shock. again, we must now acknowledge