A working party of the Basle Committee is currently engaged in elaborating the framework of an “internal ratings-based approach” to the capital charges. The keystone of any capital computation is the probability of default exhibited by individual rating categories to which borrowers are assigned.
By 2015, about 15 million prices were being collected every day from 900 retailers. The advantages for policymakers are plain to see. Online inflation data, if of high quality, are much timelier than current price statistics and may cover a much larger number of products.