us to form judgements about the future path of interest rates. changes in our analysis, and the range of views within the committee, may well affect the conclusions that financial markets draw about the likely path of interest rates. markets appear to have been rather successful in drawing conclusions because our decisions on interest rates have not, by and large, surprised them. but there is a big difference between setting out our analysis of the uk economy and dropping hints about decisions we have yet to make. so all those listening to the speeches of mpc members - including this one - for a hint as to the decisions we shall take in the coming months will be disappointed repeatedly. we make up our minds one month at a time. those, however, who read our minutes, inflation reports and speeches to understand our thinking will mine a richer seam. knowing our thinking, they will be in a better position to evaluate the implications of developments in the economy for the future path of interest rates. there is one other arena where clearer rules of the game would be of great value - the commercial court. after 13 years, we have at last drawn a line under the bcci case, the most expensive fishing expedition in history. it ended as a comprehensive victory for the bank, both on the substance of the case and on costs. the trial set new records - the longest opening speech in english legal history, an even longer reply, and almost certainly the most expensive commercial litigation ever. it is for others to comment on the behaviour of those who brought a case that even they described as a blood sport. i can presume only that they were allowed to play within the rules of the game. in which case, it is the rules of the game that should be questioned. a legal framework for enforcing contracts and resolving disputes is not just an arcane process which allows professionals to earn vast fees, but an integral part of the infrastructure of a successful market economy. it matters that there are simple, clear and timely ways of resolving disputes. what the bcci case revealed was a legal system incapable of guaranteeing that. how can a case described by the trial judge himself as built “ not even on sand but on air ” take thirteen years and over £100 million in costs to come to a conclusion? the bingham report was produced in only a year and contains all that is worth saying about the supervision of bcci. it was not comfortable reading for the bank, but the bank accepted and acted on its findings. the subsequent legal proceedings over thirteen

years have benefited only one group at the expense, in the end, largely of the creditors. as mr justice lightman argued in his 2003 edward bramley memorial lecture, the adversarial system imposes huge costs on litigants and defendants alike. as he put it, “ to the great majority of the public the perception ( if not the reality ) is that the legal system is a profitable monopoly of the lawyers ”. bcci showed that perception was indeed reality. a system that is powerless to prevent a case so hopelessly misconceived continuing for thirteen years requires examination. i very much hope that the government will look carefully at this case, learn the lessons, and take steps to ensure that such an outcome can never occur again. finally, who managed to obtain the correct answers to the two questions i gave you at the beginning? chancellor, you can see that mental arithmetic in the city is not what it was. in fact the answer to the first question is 3 / 100 or 3 %, and to the second question is £31 13s. 9d. - before tax. lord mayor, over the past year you have brought the global economy to mansion house, you have opened its doors to many who would not otherwise have thought of entering, especially from the asian community, and you have gone out of your way to meet young people from our financial firms. you have raised money for disabled children and you have promoted cornwall - next tuesday is “ cornwall day in the city ” with, i hope, free pasties for everyone. and tonight all of us here would like to pay tribute to your work since you became lord mayor, and to thank both the lady mayoress and you for the splendid hospitality - cornish produce in fact - which you have extended to us all this evening. so i invite you all to rise and join me in the traditional toast of good health and prosperity to “ the lord mayor and the lady mayoress ”, david and tessa brewer.