Letter from the Governor of the Bank of
England to the Chairman
Together with other members of the Monetary
Policy Committee, I will be appearing before the Treasury Committee
on 20 September. In advance of our regular appearances before
the Committee I normally circulate to you the text of a short
opening statement which I make before questioning starts.
Since we last met in June the turmoil in financial
markets, which continues, has clouded the outlook. Given the importance
and complexity of developments in financial markets, a more extensive
explanation of the Bank's analysis and judgments would perhaps
be helpful to the Committee. Inevitably, such an explanation will
be longer than my usual opening statement, and for that reason
I believe it would be helpful if that statement were provided
in advance of our appearance before the Committee. I am conscious
that in sending you this statement I am taking a snapshot of a
fast moving situation with a long exposure camera.
I am grateful to you for allowing me to make
public today the attached statement. I look forward to our meeting
with the Committee on 20 September.
12 September 2007