The test is whether we will be better off and whether competition will be fairer under Basel II even though it is not perfect. Level Playing Fields: Home and Host Issues As I just said, treating comparable banks comparably within a national jurisdiction may have unintended consequences for foreign banks.
The view we have taken, pending further evidence, is that there is probably both noise and signal in the result. Hence, our assessment is that inflation is not quite as low as it might have looked six to twelve months ago, but nor is it accelerating to the extent a literal reading of the latest data might suggest.