Similar but related concerns exist regarding the impact of mark-to-market requirements on assets more generally and in light of recent experiences on sovereign debt in particular. Again: short-term the concern is that volatility that drives mark-to-market changes in the fixed income portfolios of insurance companies could lead to volatility in solvency buffers. This has caused concern among some observers on a number of fronts.
If April turns out to be another very low inflation month-so, that is three good points in a row-then we are in a position to pause.