This raises the question of whether our through-the-cycle capital levels in the United States have been set so high, that our CCyB is effectively already “on": we already have capital at a level that compensates for these increases in vulnerability, but because we did not reach that capital level through activiation of the CCyB, we have no way of acting countercyclically in a future downturn.
We see a number of risks. Some of them are associated with the increasing prices of oil and commodities. These increases are progressively incorporated in the prices of other goods and services that are energy intensive. We have another set of risks, which are associated with indirect taxes and increases in administered prices. Furthermore, we have the risk of “second round” effects.