Forecasts are very important in assessing the need for policy adjustments, but there is no unique mapping from one to the other, and other considerations than just the numerical forecast have, quite properly, a bearing on the decision. In elaborating on this, there are a couple of points to make.
The imminent competition to banks’ business comes from the new breed of fintech companies having capacities to address specific pain-points of financial customers such as remittance, credit, savings, etc. The report adds that MSME banking is likely to be the fourth largest sector to be disrupted by Fintech in the next 5 years after consumer banking, payments, and investment/wealth management.