As already noted, the initial move to inflation targets arose from a wish to influence inflationary expectations by stating clearly the Government’s commitments.
On the other hand, authorities – and consumers as well – also face challenges. Firstly, fintech developments formulate the need to balance innovation on one side and – stability on the other. Adding to this, certain sectors – such as payments – may be ready for innovation. But they are hampered by high entry barriers, preserving relatively inefficient and costly systems.