Until the safety net framework was established, there were some cases that the Bank of Japan also played an unconventional role as a central bank in dealing with failed financial institutions by injecting its money as capital. 2.
Additional increases in administered prices and indirect taxes will also contribute to inflationary pressures. In particular, the expected VAT increase in Germany (+3 pp) next year is expected to keep euro area headline inflation at a higher level (+0.3 pp in 2007). Finally, monetary and credit aggregates are growing at rates much higher than is compatible with non-inflationary real growth.