not next month or the month after, but further ahead when the impact of recent developments in both credit supply and world commodity prices will have worked their way through the economy. this is the time not to abandon but to reinforce our commitment to stability. the slowdown in demand, and the recent falls in energy prices, will bring inflation back towards the target. the committee must balance the risk that a prolonged slowdown in domestic demand pulls inflation materially below the target against the risk that today ’ s high inflation rate becomes embedded in inflation expectations. during the past month, the balance of risks to inflation in the medium term shifted decisively to the downside. and the mpc – in an action co - ordinated with six other major central banks – cut bank rate by half a percentage point to 4. 5 %. looking ahead, the outlook is obviously very uncertain – both for the world as well as our own economy. the mpc cannot simply extrapolate the past into the future. the prospects for oil and other commodity prices are difficult to assess. so too are the period over which bank lending will return to normal and the extent of the damage to business and consumer confidence. moreover, the credit crunch affects not just demand but also the supply potential of the economy, complicating the assessment of the inflationary impact of changes in the level of demand. the associated shift of resources away from those parts of the economy that have flourished in recent years towards other areas of economic activity will moderate the increase in potential output while that adjustment is taking place. the mpc must monitor carefully all the available evidence about fast - changing patterns of spending, supply and prices. it will act promptly to ensure that inflation remains on track to meet our target. the downturn in the economy will affect not just monetary policy but fiscal policy too. that subject is for another occasion, but there is one point i do want to make tonight. the cost of supporting the banking system will inevitably raise the level of national debt. managed properly, however, such a rise in national debt need not prove inflationary. indeed, within a reasonable period it should be possible for the government to reduce its stake in the banking system, for example by selling units in a bank reconstruction fund, and repay the additional debt that had been issued. that is one difference between past increases in national debt in times of war and the increase now to pay for recapitalisation of the banking system which involves the acquisition of an asset.

degree path and has committed to get to 1. 5 degrees by 2050. axa estimates that its assets are currently consistent with a 3. 7 degree path, and it has developed an innovative climate var model to measure the opportunities as well as risks from the climaterelated exposures of its investments. 19 with our citizens — led by the young — demanding climate action, it is becoming essential for asset owners to disclose the extent to which their clients ’ money is being invested in line with their values. conclusion the tcfd provides the necessary foundation for the financial sector ’ s role in the transition to net zero that our planet needs and our citizens demand. with the growth of different esg measurement approaches, scores have been shown to vary greatly between providers. barclays found positive but low correlations across all three esg dimensions ( 14 % for governance and 13 % for environment ) when comparing msci and sustainalytics. similarly, state street global advisors found a correlation of 0. 53 for constituents of the msci world index. see axa 2019 climate report, available on : https : / / www - axa - com. cdn. axa - contento - 118412. eu / www - axa - com % 2f308285a0 - f2094b04 - 9a3e - 41d8df848445 _ axa2019 _ ra _ en _ climate _ report _ 19 _ 07 _ 2019 _ pdf _ mel. pdf. all speeches are available online at www. bankofengland. co. uk / news / speeches so whether the tcfd is used to manage the growing physical and transition risks from climate change or to finance the enormous opportunities to develop more resilient and sustainable economies, your work to develop the tcfd and spread its adoption is literally vital. all speeches are available online at www. bankofengland. co. uk / news / speeches