90 - 120 - 150 - 180 minutes since trough sources : bloomberg and bank calculations ( a ) sterling flash event 7 october 2016 ( blue ), us equity markets flash - crash 6 may 2010 ( magenta ), and us treasury market flash - rally 15 october 2014 ( orange ). ( b ) data shown in two minutes intervals, and may not fully capture the lowest traded prices during each event chart 2 thomson reuters matching gbp / usd price and order book behaviour in the sterling flash event of 7 october 2016 ( a ) source : bis markets committee report : “ the sterling flash event of 7 october 2016 ” ( a ) the blue and red circles here represent resting bid and offer limit orders, respectively, in the order book. the black line represents the implied mid - price, and the intensity of the blue and red colours signifies the size of the order. all speeches are available online at www. bankofengland. co. uk / speeches chart 3 numbers of electronic and floor equity exchanges ( a ) chart 4 share of algorithmic trading in fx spot markets number of exchanges electronic exchanges floor exchanges algorithmic trading manual trading per cent electronic exchanges floor exchanges sources : jain ( 2005 ), hendershott & seasholes ( 2006 ), sources : bank of international settlements and electronic exchange websites and bank calculations broking services ( ebs ) ( a ) based on the date of automation of largest international stock exchanges across 119 countries. chart 5 estimated proportion of ptf activity in chart 6 yearly average bid - ask spreads for total us equity trading ftse 100 constituents per cent bid - ask spreads for ftse 100 constituents basis points 05 06 07 08 09 10 11 12 13 14 15 16 sources : tabb group, reproduced from credit suisse – ‘ we source : thomson reuters are all high frequency traders now ’ all speeches are available online at www. bankofengland. co. uk / speeches chart 7 latency on the lse and number of us chart 8 share of trading across venues in uk consolidated tape quote updates equity markets exchange ( network ) latency on lse ( lhs ) number quote updates per million quote changes ( thousands ) shares traded ( rhs ) microseconds per cent of volume traded high degree of price and counterparty transparency lse less transparency around price and counterparty other lit exchanges more transparency around counterparty, less transparency around price off - book trading source : brogaard ( 2013 ), lse group, credit suisse research source : fidessa

inflation rates are projected to remain elevated in 2006 and 2007, with risks to this outlook remaining clearly on the upside. given the ongoing marked dynamism of monetary growth in an environment of ample liquidity, a cross - check of the outcome of the economic analysis with that of the monetary analysis supports the assessment that upside risks to price stability prevail over the medium to longer term. it is essential that inflation expectations remain firmly anchored at levels consistent with price stability. if our assumptions and baseline scenario continue to be confirmed, it will remain warranted to further withdraw monetary accommodation. indeed, acting in a firm and timely manner remains essential to ensuring price stability over the medium term. the governing council will therefore exercise strong vigilance. as regards fiscal policy, euro area countries have recently notified their deficit and debt figures for 2005 to the european commission, and most have reported on developments in 2006 and budget plans for 2007. while, on average, this information points to further, albeit slow improvements in budget balances, this should not give rise to complacency. it is important that commitments under the revised stability and growth pact are met in all euro area countries. it is essential that budgetary consolidation is strengthened in the current economic upswing and that pro - cyclical policies are avoided. this would boost confidence among market participants and the public. to that effect any revenue windfalls from faster than expected growth should be pre - committed and used in full to speed up deficit reduction or to increase surpluses in good times. the prospects for attaining sound budgetary positions improve when consolidation plans are based on credible commitments to reduce expenditure ratios and better expenditure control mechanisms. finally, let me reiterate previous calls for high quality statistical data and sound statistical reporting, which are key for the prevention and correction of budgetary imbalances. as regards structural reforms, the governing council stressed the importance of creating a fully operational single market and flexible product and labour markets in order to enhance the adjustment capacity of the euro area economy and its resilience to external shocks. liberalising product markets to allow more competition would raise incentives for firms to invest and innovate, thereby raising productivity growth. removing labour market rigidities and distortions in wage and price formation are key conditions for promoting more homogeneous cost and price competitiveness trends among euro area countries and for generating sustained output growth and job creation. in particular, wage increases should be guided, in general, by the trend in labour productivity growth, while taking full account of