To the extent that this is the case, short-term volatility in annual inflation rates, including negative inflation rates, is not relevant from the medium-term perspective of monetary policy. We expect that price stability is maintained at the medium-term.
However, the proposal will improve the stability of the financial system by clarifying where risks reside; improving the pricing of risk; and, thus, enhancing the allocation of resources within our economic system. It also will promote a more competitive financial system, as it levels the playing field for all financial institutions.