The equities market continues to perform strongly in the second month of 2020 as the PSEi continued to trade above the 7,100 benchmark, hitting a peak of 7,507.20 index pts. on 11 February before closing at 7,413.0 pts on 20 February 2020.
However, the use of monetary policy on second best grounds must recognise that any benefits this policy may bring in terms of greater financial stability will come at a cost of weaker control of inflation and economic activity.