Many have wondered why, given it has already lowered its own inflation forecasts for 2015 and 2016, the BSP stood pat on its policy rates and didn’t follow the other central banks that had earlier eased their policy settings. Two reasons. First, unlike in some economies, the risk of inflation falling below zero or to negative levels in the Philippines appears to be minimal.
Therefore, the international community, through long negotiations, has succeeded in reaching global agreements, such as the Kyoto Protocol and the more recent Paris Climate Agreement, in order to address the problem on a global scale. Greece, along with other small countries in the climate-sensitive Mediterranean region, is expected to incur adverse effects from climate change.