This outlook for price developments remains subject to upside risks including further increases in oil prices, a stronger pass-through of past oil price rises to consumer prices than currently anticipated, additional increases in administered prices and indirect taxes, and – more fundamentally – stronger than expected wage developments due to second-round effects of past oil price increases.
Orderly resolution regimes enable the financial system to absorb the failure of individual firms: especially in a period of innovation, a “zero failures” objective is not appropriate. 3. Risks This brings me to the myriad associated risks. I will start from a financial stability perspective, where we need to consider the risks to incumbents.