Whereas inflation expectations remain on average within the target range for the forecast period ending 2013 and as such appear to be relatively well anchored at present, future developments in this regard will require careful monitoring. Nominal wage settlements, although well above the upper end of the inflation target range, have moderated.
Increased information and standardized pricing conventions, such as the use of option-adjusted spreads, moved these instruments from the experimentation and learning phase to the phase of broad market acceptance. When market participants realize that they do not have the information necessary for proper valuation of risks, the price-discovery process can be disrupted, and market liquidity can become impaired.