The strategic priorities endorsed by Court for 2012/13 are:
Core Purpose 1 - Monetary Stability
Strategic Priority 1. Keep inflation on track to meet the Government’s 2% target.
- Respond effectively and decisively to the evolving risks posed by the European debt crisis in order to ensure that inflation remains on track to meet the inflation target.
- Advance the Bank’s understanding of the evolving macroeconomic environment and the impact of unconventional monetary instruments.
- Understand and communicate the interface between monetary and macroprudential policies.
- Exploit the new suite of models in forecasting and analysis.
Strategic Priority 2. Ensure the Bank has the policies, tools and infrastructure in place to implement monetary policy and issue banknotes.
- Implement further asset purchases as required by the MPC and stand ready to undertake sales.
- Be prepared to reintroduce reserves averaging framework if required.
- Meet demand for the required volume and denomination of banknotes efficiently and effectively, including preparations for the 2012 London Olympics.
Core Purpose 2 - Financial Stability
Strategic priority 3. Maintain stability and improve the resilience of the financial system.
- Influence domestic and international reform, including (with HMT) the new UK regulatory bill.
- Continue to develop the EU and UK resolution regimes, including through a bail-in tool and, with the FSA, through banks’ recovery and resolution plans and a regime for CCPs.
- Develop the contribution of market intelligence to policy debates.
- Review the Bank’s contribution to financial system business continuity planning.
Strategic priority 4. Deliver macroprudential policy, operating through the Financial Policy Committee.
- With HMT and FSA, influence the international framework for macroprudential regulation, including through the European Systemic Risk Board.
- Support FPC in developing recommendations to HMT on instruments for macroprudential regulation.
- Develop an effective interface between macro and microprudential regulation, including turning FPC measures into PRA and FCA actions.
- Develop analysis on the functioning and regulation of the non-bank financial sector, including insurance and assessing ‘regulatory perimeter’ issues.
Strategic priority 5. Complete the transition of microprudential supervision and infrastructure oversight.
- Prepare to implement the new supervisory framework and the PRA’s operating model.
- Develop the operational framework for the oversight in the Bank of central counterparties and securities settlement systems.
- Establish effective co-operation with the Financial Conduct Authority.
Supporting Core Purposes 1 and 2:
Strategic priority 6. Build and sustain public support for the Bank’s governance and for its monetary policy, macro and microprudential frameworks.
- Work to support appropriate accountability mechanisms for the Bank, including parliamentary scrutiny, with clear roles for Court and its sub-committees.
- Actively explain the Bank’s governance and activities.
- Continue to make the case for inflation targeting and the monetary policy framework, including through new media.
- Influence the international debate on monetary policy, and the international monetary system.
- Develop a constituency that supports financial stability and the aims of macro and microprudential regulation.
- Promote public understanding of the role of FPC and PRA.
Strategic Priority 7. Ensure the Bank has the right people and processes to carry out its core purposes — in particular during this period of transition
- Complete practical preparations for integrating the PRA into the Bank, including the IT and data collection infrastructure for both ‘Day 1’ and steady state.
- Prepare enhanced central services to provide support across the Bank, including the PRA.
- Implement findings of the efficiency review of Banking Services and ensure ongoing budget discipline and value for money.
- Implement talent management and rewarding career paths for staff, and conduct a strategic pay review.
- Ensure that the Bank focuses on the big issues and risks by fostering a culture of creativity and challenge and protecting the time devoted to longer-term research.
- With HMT and FSA, complete the five-yearly review of the Bank’s CRD funding and agree the PRA’s future funding model.
- Improve resilience of IT system security.
- Identify areas where Heads of Division and other senior Bank staff can assume more responsibility, and delegated authority, from the Bank Governors and Directors.
- Maintain the highest level of risk management across all the Bank’s activities.
- Exercise financial control to keep expenditure within budget and obtain value for money.
More details can be found in the Bank's Annual Report (see links below).