setting standards remarks given by dave ramsden, deputy governor for markets and banking iso 20022 conference, bank of england 6 december 2018 with thanks to carsten jung, amy lee, varun paul, neil pearston, cameron penny, james southgate and tom smith. all speeches are available online at www. bankofengland. co. uk / publications / pages / speeches / default. aspx welcome all to today ’ s iso 20022 conference. iso produces a lot of standards, but it ’ s those related to financial messaging, and in particular payments data which is what we ’ re here to talk about today. i ’ m going to open this event by talking a little more about why the bank, along with pay. uk and the payment systems regulator ( psr ), is so keen to work with the payments industry to deliver this important change to create the conditions for the next generation of innovation in uk payments and internationally. to the bank of england, data, and the ability to collect, process and interrogate them, is vital to its ongoing ability to deliver its mission. careful analysis of economic data is a key input into the monetary policy committee ’ s deliberations. the bank collects large quantities of data from the firms it supervises ; that lets us understand their businesses individually and collectively, and so underpins the decisions of the financial policy committee and prudential regulation authority. in my own area, markets and banking, financial market data are crucial for calibrating and managing our own operations and risk management. the decisions that we make affect the whole economy, and ultimately serve the good of the people of the united kingdom. and, making these decisions effectively relies on good data. this isn ’ t new : the bank has been collecting data in one form or another since its foundation in 1694. but while data have always been important, the pace of change in technology has unlocked much greater potential. across public and private sectors alike the possibilities of leveraging data on a massive scale or in innovative ways are being explored – in health and consumer tech, in finance in the form of fintech, and regtech and suptech for regulators like the bank. 1 as well as providing new opportunities for individual firms, the use of data in fintech – to better price and allocate capital and to monitor the uses to which it is being put – has the potential to support productivity growth across the wider economy. 2 3 it is often said that “ data

largely owing to the adverse developments in participation that we did not fully foresee. now that the economy has slowed ( and probably entered recession ), we are starting to see labour market indicators turn. vacancies have stabilised and there are tentative signs they will fall from their historically high levels. should economic slack emerge and unemployment rise as the latest mpc forecasts imply, that will weigh against domestic inflationary pressure and ease the threat of inflation persistence. it is these two factors – the evolution of energy prices and developments in domestic labour markets – as well as the policy responses to them, such as the fiscal announcements made last week, that drive my current assessment of the outlook for monetary policy. if you like, these are the main arguments of my monetary policy reaction function, especially in so far as the typically more persistent domestically - driven dynamics of inflation stem from the labour market and corporate pricing behaviour. as i have said on previous occasions, in my judgment there is still some more to do with bank rate in order to address prevailing inflationary pressures and complete the necessary normalisation of monetary policy following a decade or more of exceptional accommodation. bank of england in line with the mpc ’ s most recent forecast and communication and on the basis of the information we have available today, i do not anticipate the levels of bank rate priced in financial markets when the forecast ’ s conditioning assumptions were frozen12 will be required. but, given the need to contain the risk of greater inflation persistence implied by potential second round effects, further action is likely to be required to ensure inflation will return sustainably to its 2 % target over the medium term. as ever, my votes on bank rate at the december mpc meeting and beyond will be determined by pursuit of the inflation target, and guided by the evolution of the economic and financial data. conducting central bank asset purchases but the mpc is not only taking decisions about bank rate. in parallel with increases in bank rate, the mpc has also embarked on quantitative tightening. gilts held as a result of qe conducted over the past decade or more have been sold as of the beginning of this month, following the decision in february 2022 to cease reinvesting the proceeds of maturing bonds. qt is another aspect of the normalisation of the monetary policy stance. the mpc has committed to unwinding its qe holdings in a gradual and predictable manner. gilt sales are running ‘ in the background ’, rather than being responsive to month