In addition, strong capital helps banks absorb unexpected shocks and reduces moral hazard associated with the regulatory safety nets. Finally, let me reiterate BSP’s commitment to the identification, assessment, and promotion of sound risk management practices in the financial system, which it considers as central elements of good supervisory practice.
Sources: Haver; Ministry of Internal Affairs and Communications. 7  Chart 8  II. Price Developments  Outlook for Prices The Bank's Forecasts for CPI (All Items Less Fresh Food)  Inflation Expectations 2.5  y/y, ann. avg., %  2  y/y % chg.