Whatever the merits of that much-contested point, it seems wise to address this issue as we face what could well be another extended period of low inflation and low interest rates. It is important to note that incorporating financial stability considerations into monetary policy decisions need not imply the creation of an additional mandate for monetary policy.
On inflation, the BSP’s latest estimates show that inflation for the year will reach 4.6 percent, which is above the official target range of 2.0 to 4.0 percent. Elevated inflation is seen to be temporary as estimates show this will slow down to 3.9 percent in 2023.