One of the reasons for providing proposed guidance at several stages in the Basel II implementation process is to help guide U.S. institutions that wish to adopt Basel II as soon as possible. We suggest that those institutions continue to move forward with their implementation, including the identification of gaps in their own preparation, while remembering that proposals could change.
The 2019 inflation number was well within the BSP’s 2-4 percent target range for the year. Looking ahead, the latest baseline forecasts indicate that inflation is projected to average at 2.9 percent for both 2020 and 2021. The balance of risks to future inflation appears to be weighted toward the upside for 2020, but remains tilted to the downside for 2021.