According to the survey results, firms in Germany have changed their price setting behaviour as well, albeit probably not as strongly as their inflation expectations. In particular, the percentage of firms expecting to increase their own prices reached 82%. During the summer of 2021, this figure was five percentage points lower.
The overarching principle that we follow in tweaking these regulations is to see that the needs of the growing economy are met by the financial system, while taking care that prudential principles are not compromised, nor is financial stability threatened. We study the global practices and modify them to meet our unique requirements and this has been the hallmark of the Indian regulatory approach.