In my view, medium- to long-term inflation expectations in Japan are mainly determined by supply-side factors such as the potential growth rate.
Especially because CCPs are an extremely crucial market infrastructure for a robust financial system. We as regulators, as well as CCPs and market participants, must work together to make the current processes even more resilient and flexible. Some critical areas should be subject to further scrutiny – for example, CCP risk management frameworks, procyclicality and the capacity of default waterfalls to absorb losses.