Consequently, it is imperative that creeping protectionism be thwarted and reversed. 13  Although increased flexibility apparently promotes resolution of current account imbalances without significant disruption, it may also allow larger deficits to emerge before markets are required to address them.
The reason we do this is to increase the likelihood that headline inflation will be within target by the second half of next year and, hopefully, for the rest of 2024. The BSP's policy rate hikes will also prevent a significant narrowing of the interest rate differential between the US and the Philippines.