The Basel Committee on Banking Supervision (BCBS), therefore, after a world-wide consultative process and several impact assessment studies, evolved a new capital regulation framework, called “International Convergence of Capital Measurement and Capital Standards: A Revised Framework”, which was released in June 2004.
Measures of underlying inflation remain a good deal higher, at around 3¾ per cent over the year, but they too are gradually declining. We believe that decline has further to go, though in the medium term inflation on either a CPI or underlying basis does not look like it will fall as far as we thought a few months ago.