The Bank’s strategic priorities endorsed by Court for 2013/14 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.
- Consider the impact of unconventional monetary policies.
- Understand and communicate the interface between monetary and macroprudential policies.
- Respond to the Stockton Review of the MPC's forecasting capability.
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
- Keep under review the plan for the unwinding of the APF.
- Be prepared to reintroduce reserves averaging framework if required.
- Meet demand for the required volume and denomination of banknotes efficiently and effectively. Progress the banknote supplier re-tender process.
- Develop a strategic plan for future note issuance
Core Purpose 2 - Financial Stability
Strategic priority 3. Maintain stability and improve the resilience of the financial system.
- Influence domestic and international reform, co-ordinated across the Bank and the PRA.
- Continue to develop the EU and UK resolution regimes, including through a bail-in tool and, with the PRA, through banks’ recovery and resolution plans.
- Implement the operational framework for the oversight in the Bank of CCPs and SSSs.
- Embed and continue to develop the contribution of market intelligence to policy debates.
- Further develop the contribution of market intelligence to policy debates.
- Respond to the Plenderleith Review of the provision of Emergency Liquidity Assistance in 2008/09; and to the Winters Review of the Bank's framework for providing liquidity to the banking system as a whole.
Strategic priority 4. Deliver macroprudential policy, operating through the Financial Policy Committee.
- With HM Treasury and the PRA, influence the international framework for macroprudential regulation, including through the European Systemic Risk Board.
- Continue developing analytical support to the FPC, including on the non-bank financial sector, and on the impacts of decisions on FPC instruments.
- Support FPC in developing recommendations to HMT on instruments for macroprudential regulation.
- Continue to develop an effective interface between macro and microprudential regulation, including the use by the FPC of recommendations and directions to the PRA and the FCA.
Strategic priority 5. Integrate microprudential supervision into the Bank
- Deliver a forward-looking, judgement-based supervisory approach and affirm the PRA's authority with the PRA-authorised firms.
- Maintain effective co-operation with the FCA.
Strategic priority 6. Influence and implement policy to advance the PRA objectives
- Ensure the implementation of the new regulatory regime and other changes to domestic, European and international law governing regulation.
- Lead and shape the development and implementation of domestic and international policy to advance the PRA objectives.
Supporting Core Purposes 1 and 2:
Strategic priority 7. Build and sustain public support for the Bank’s governance and for its monetary policy, macro and microprudential frameworks.
- Establish the role and public understanding of new accountability mechanisms for the Bank, with clear roles for Court and its sub-committees, including the new Oversight Committee.
- 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.
- Continue to develop a constituency that supports financial stability and the aims of macro and microprudential regulation.
- Increase public understanding of the role of FPC and PRA.
- Review the Bank's communications protocol annually to ensure adherences to it.
Strategic Priority 8. Ensure the Bank has the right people and processes to carry out its core purposes.
Create one Bank with a unified commitment to all aspects of its core purposes, and a culture of inclusiveness and excellence.
- Successfully integrate the Bank's new statutory functions while maintaining the effectiveness of existing functions.
- Ensure that leadership and governance structures can operate effectively in carrying out the core purposes during a period of transition.
- Provide organisational support, systems and processes necessary for the delivery of the expanded core purposes.
- Continue to manage the Bank's resources efficiently.
More details can be found in the Bank's Annual Report.
Under the Bank of England Act 1998, as amended by the Financial Services Act 2012, the Bank has a statutory objective of protecting and enhancing the stability of the financial system of the United Kingdom. The Bank's Court of Directors is required, within six months of the coming into force of the relevant section of the Act on 1 April 2013 and thereafter at least every three years, to produce and publish a strategy in relation to the Financial Stability Objective, consulting the Financial Policy Committee and the Treasury. This document fulfils the requirement to produce and publish the first such strategy, by 1 October 2013. The Bank plans to update this strategy in early 2014 following the arrival of the new Deputy Governor for Financial Stability.