The BSP has yet to exhaust the conventional monetary instruments in its toolkit to support the economy, should conditions warrant. Third, the decision to unwind COVID-19 policy responses must be done in a gradual, prudent and informed manner. Complete risk assessment based on all available data must support the decision and timing of unwinding. Likewise, appropriate communication must accompany the decision to unwind.
One is the oil price, which since December was at one point down close to 40%, now it’s only 20%. That is something to assess – the volatility – whether you look through it or whether there is a risk of it becoming entrenched. The second is China and other emerging market economies.