We consider that the second-round effects are unlikely to emerge in the near term, given the current level of the domestic output gap, the inflation expectations of households, and firms' price-setting behavior. Developments in wages are one of the important indicators pointing to the emergence of second-round effects, and so far wage growth has been relatively weak.
However, the weaknesses revealed in the course of the financial crisis have prompted supervisors and regulators on international as well as EU levels to rethink the supervisory framework and come up with proposals for strengthening the current architecture.