Second, there were strong financial incentives at certain firms to increase the profitability of mutual fund activities, but the legal and reputational risks of these incentives were not appropriately addressed. Third, a lack of adequate employee training resulted in employees deviating from standard procedures, in order to accommodate certain large customers.
We are in a difficult situation in terms of achieving 2 percent inflation by fiscal 2020, as it is taking more time than expected for inflation to rise. Nevertheless, the momentum whereby an improvement in the output gap leads to an increase in actual inflation, and then a rise in inflation expectations, is maintained.