In particular, it would increasingly burden those banks which rely on traditional retail deposit-taking and lending operations as their main source of income. So, banks find themselves in a sort of a diver’s dilemma. Staying underwater for too long entails the risk of running out of oxygen. But coming up too quickly may cause decompression sickness.
Under our May projection, over the next twelve months y-o-y inflation will hover around the target midpoint, under the impact of temporary factors, primarily the global prices of oil and primary agricultural commodities, which have been on the rise for some time already owing to higher optimism over global economic growth.