When a policy fails to achieve the intended objectives, it creates credibility gap for the central bank and outright pessimism in the process. Our approach to dealing with this problem has been to enhance public understanding of what monetary policy can and cannot do, while collaborating with other organs of government to ensure the complementarity of the various economic policies.
Because imports grow faster than the economy-and we want it to grow faster because our imports are largely capital goods and raw materials. Low growth will mean a stronger peso, but it will also mean lower revenues. On the whole, that will mean the deficit will be larger, other things being equal.