In recent years, we are seeing the generally sustained positive alignment of strong growth and low inflation which is what is needed to ensure that the economy can continue growing without having to worry about overheating. The BSP, being the country’s central monetary policy authority with the core mandate of promoting price stability, is committed to ensure that this noninflation growth is sustained.
On the one hand, domestic demand should be supported by our monetary policy measures, the ongoing improvements in financial conditions, the progress made in fiscal consolidation and structural reforms, and lower energy prices supporting real disposable income. Furthermore, demand for exports should benefit from the global recovery.