The threat to act will be more effective the more credible the central bank has been over time in actually delivering price stability, as defined quantitatively. The paradox would be that this policy of a priori “reinforced alertness” would make the central bank appear ex post less “activist” in terms of changes to the policy rate.
Because of this, a deliberate part of our strategy is to further deepen our financial education and consumer protection initiatives. This balanced regulatory approach is anchored on the core principles of risk-based, proportionate and fair regulation; active multi-stakeholder collaboration; and, consumer protection. These principles are pragmatically implemented through our flexible “test and learn” approach in dealing with increasing digital transformations in the financial system.