We foresee inflation rising further in the near term, but then declining in the course of next year. Market interest rates have increased since our last meeting in early September. However, overall financing conditions currently remain favourable for firms, households and the public sector.
The overwhelming majority of these banks are significantly less complex and have a scale of operations and market that generally does not extend beyond the United States. As I will discuss, these entities need not be covered by the revised accord to meet international obligations or our own regulatory responsibilities.