In addition to such moves, if full-time employees' wages increase with an improvement in productivity, this will lead to an increase in households' tolerance of price rises. While price developments are affected by various factors, I consider that the factor that determines the underlying trend in prices is the aggregate supply-demand balance.
At the same time, banks and the economy face a prolonged period of very low interest rates. While net interest income hasn’t been affected much so far, the pressure on margins is likely to mount over the medium term. Second, banks operate in a still relatively new regulatory environment. And rules based on the Basel III regime are currently being finalised and phased in.