This situation is not yet applicable in Japan, since the economy is still in the process of establishing an anchor on the higher medium- to long-term inflation expectations at around 2 percent. Until these expectations are firmly anchored, it is possible that the actual inflation rate, short-term inflation expectations, and medium- to long-term inflation expectations will continue to affect each other.
Financial innovation and technology risk Technology change is disrupting the landscape of financial services. The competitive landscape is changing, with new entrants, new business models, a race by incumbents to invest in developing the necessary capabilities, and in many cases the potential for a fundamental disruption in the value chain of traditional financial services firms and sectors.