Macroprudential policy should therefore be built on a strong, time-invariant foundation of microprudential and macroprudential regulations that aim to ensure financial institutions are robust enough in normal times and are endowed in unstable times with characteristics, such as low leverage, that prevent or retard the build-up of systemic risk.
As shown in the October 2015 Outlook Report, the projected rates of increase in the CPI for fiscal 2015, 2016, and 2017 are 0.1 percent, 1.4 percent, and, excluding the direct effects of the scheduled consumption tax hike, 1.8 percent, respectively (Chart 1).