Headwinds and the neutral policy rate First, through the spring and summer of 2011, it became clear that some Canadian market participants were making the short-hand assumption that the policy interest rate needed to be at neutral when inflation was on target and the output gap was closed.
The Philippines also enjoys healthy external accounts, with hefty gross international reserves that served as buffer during this pandemic. Meanwhile, the peso depreciated by 2.43 percent to ₱52.27 as of May 23 from its end-2021 level. This mirrors the market sentiment affecting all emerging markets across the globe amid the RussiaUkraine conflict.