##a board will be whether markets ’ ability to recover reflects their resilience to shocks ; or conversely whether these incidents are symptomatic of an underlying fragility. market intelligence can play a key role in answering that question. but the expanded responsibilities of the bank have also revealed that elements of our approach need to be strengthened. in particular, a recent report by lord grabiner indicated concern that the bank ’ s systems and controls have not always kept pace with the changing role of the bank. today we are publishing the results of a thorough review 11 of our mi function. from it i would highlight three key points that will remove some unconstructive ambiguities around the gathering of mi : • first the bank has published a “ market intelligence charter ” which explains in clear language the terms of the bank ’ s engagement with market participants, and its rationale for gathering mi. • second the bank is strengthening the set of policies ( including escalation, recording and compliance policies ) that govern mi, and expanding the training accompanying those policies. • third, the bank will establish a bankwide executive level committee to oversee and agree the priorities for the bank ’ s mi programme to ensure it retains flexibility, focus, and relevance to the policy challenges of today and tomorrow. in addition, a dedicated mi division will co - ordinate, synthesise and disseminate mi around the bank. the ability of the bank ’ s mi function to provide information to senior policymakers over the past 8 years, as the first waves of the crisis first rushed onto the bank ’ s doorstep, and then as solutions flowed back out across the system, has been vital to our effectiveness. the staff who do this work are a credit to the institution. as public servants they contribute every day to delivering our mission to promote the good of the people of the united kingdom by maintaining monetary and financial stability. the changes we are making public today will ensure they can continue to do that important work effectively. 7. open about our business the bank ’ s balance sheet has been at the heart of the financial system for over 300 years, and remains our most important policy tool. the innovations and adaptations in recent years have meant that it has been central to the flexible and effective response to all of the major policy challenges faced by the bank since the onset of the financial crisis. and i am sure it will be a vital part of everything we do in future. over that period, we have re - learnt one

david dodge : summary of the latest monetary policy report update opening statement by mr david dodge, governor of the bank of canada, at a press conference following the release of the monetary policy report update, ottawa, 24 january 2008. * * * good morning. i'm pleased to be here with you today, for my final press conference as governor of the bank of canada, to discuss our january monetary policy report update. the canadian economy continues to operate above its production capacity, despite some slowing in growth and inflation in the fourth quarter of 2007. financial conditions have deteriorated since october, leading to tighter credit conditions in industrialized countries. given this, and a deeper and more prolonged decline in the u. s. housing sector, the outlook for the u. s. economy in 2008 is now significantly weaker than at the time of the october mpr. the weaker u. s. economy will lead to additional downward pressure on canada's export growth. despite tighter credit conditions, domestic demand in canada is expected to remain strong, supported by continued income growth associated with the increase in commodity prices seen since october. overall, the bank now projects that the canadian economy will expand by 1. 8 per cent in 2008 and 2. 8 per cent in 2009. this growth profile implies that the economy will move into excess supply in the second quarter of this year, and then return to balance in early 2010. inflation is projected to fall below 1 1 / 2 per cent by the middle of this year before returning to 2 per cent by the end of 2009. this reflects a price - level adjustment related to increased competitive pressures in the retail sector stemming from the level of the canadian dollar, as well as the recent reduction in the gst. excluding the impact of the gst reduction, total cpi inflation is projected to average close to the 2 per cent target throughout 2008 and 2009. of course, there are a number of upside and downside risks to the bank's base - case projection for inflation. but overall, we judge these risks to be roughly balanced. on 4 december and on 22 january, the bank lowered its target for the overnight rate by onequarter of one percentage point, bringing it to 4 per cent. further monetary stimulus is likely to be required in the near term to keep aggregate supply and demand in balance, and to return inflation to target over the medium term.