He will also reinforce the need for central bank adaptability in an environment of fast and disruptive developments in financial technology, aligned to the nation’s aspirations for digital transformation and knowledge-based economy.
However, in such a situation, the outlook for the economy and prices has considerable downside risks, so the direction of financial stability and price stability actions (e.g. to repair a broken monetary transmission mechanism) typically go in the same direction and a conflict between both policy branches is rather unlikely.