The ratio did rise as high as 50 percent in the high-deficit years of the early 1990s, but it dropped sharply thereafter with the primary budget surpluses of the late 1990s. Looking ahead, things might not be so favorable.
Moreover, our forecast continued to show inflation upticks as transitory and moderating within the target in 2019. Nevertheless, recognizing increasing volatilities in world oil prices and global interest rates, the BSP responded to changing monetary environment conditions by adjusting auction volumes and allowing the term deposit facility (TDF) rates to rise, creating effective tightening in the market.