An additional challenge here is that institutions outside the supervisory umbrella - such as hedge funds - tend to grow significantly. Moreover, the growth of financial markets in general and the growing importance of financial conglomerates in particular go hand in hand with a greater opaqueness of the size and distribution of risks.
With regard to the outlook, the year-on-year rate of increase in the CPI is likely to be around 1¼ percent for some time, as upward pressure from import prices – in particular energy prices – will likely wane, while underlying inflationary pressure – due mainly to the improvement in the output gap – will increase. II.