Rather, financial regulation and supervision have to keep pace with developments in the financial industry. Moreover, national authorities need to be aware of the risk that their powers may become narrow compared to the sphere of influence of the global financial players.
The current rise in CPI inflation is due to a rise in import prices that reflects high commodity prices and the yen's depreciation, and to the resultant pass-through of cost increases. It should be noted, however, that international commodity prices, including crude oil prices, have already turned to a decline, as market participants have factored in the slowdowns in overseas economies.