Reacting to the short-term vagaries of the price level can be counterproductive. However, this argument can easily lead to an underestimation of the costs and risks of deflation that arise when inflation expectations become de-anchored, when nominal rates are at their lower bound, and when debt (public and private) is high.
We at the Bangko Sentral also welcome this initiative because it presents enormous potential for creating a truly inclusive financial system where strong and vibrant institutions provide efficient financial services to more people including the underbanked and those who remain unbanked or unserved by our financial system.