If I discuss the procyclicality issue here I am therefore telling hardly anything new. However it seems necessary to point out at this stage that we can not close the debate yet. The mechanism by which capital standards act as a cyclical amplifier is relatively easy to understand.
In sum, there is a need to change the rules of the game that prevailed in the “deflationary equilibrium.” To that end, the Bank is strongly and clearly committed to achieving the price stability target of 2 percent CPI inflation rate at the earliest possible time, with a time horizon of about two years.