As noted by past Roundtable discussions on regional banks in Africa, Regional Economic Communities (REC), in which most Pan-African financial banking groups operate, can be very useful in this regard due to their specific focus on building supervisory capacity and strengthening cross-border regulations 7.
In the actual formation of inflation expectations, aspects of both the backward-looking and forward-looking formations are considered to coexist. This is called hybrid-type expectation formation. Based on past experiences, the aspect of backward-looking expectation formation is prominent in Japan. On the other hand, the government and the central bank have been strongly pursuing initiatives to work on forward-looking expectations.