We have become clearer about this in recent years, as part of adopting the Quarterly Projection Model (QPM) as the main forecasting tool for the Monetary Policy Committee (MPC) back in 2017. The QPM sets out a proposed path for interest rates, which it gets from a so-called ‘Taylor rule’. That rule responds to the output gap as well as inflation.
There is one general principle that should inspire the way authorities tackle FinTech from a microprudential point of view: to the extent that FinTech activities involve the same risks that justify supervision of other activities, they should be regulated and supervised in much the same way.