In the case of the Philippines, the projected US slowdown is not seen to have a significant immediate impact. However, we recognize that a longer-than-expected US recession could take its toll on the economy. Given this, the BSP will continue to monitor global developments to ensure that appropriate measures are implemented, when warranted.
The second challenge is global risk emanating from high and volatile international prices of oil. In the absence of a change in OPEC’s quota policies or a major global slowdown, international oil prices are likely to remain high due to continued geopolitical and supply risks coupled with strong global demand and continuing speculation in the futures prices of oil.