The answer to this has two parts. First are the costs that come from the level of inflation being too low, both in the steady state and when dealing with the legacies of the crisis. Second are the costs that arise from transitioning between different anchors for inflation, and especially when the original objective is not being fulfilled.
Our first attempt to do this was unfortunately aborted with the Bank thus missing an opportunity to rank among the pioneers of this approach which has gained wide recognition after the crisis. The disallowed provision had to be remitted by way of a second transfer of profit during the year.