Partly because of its success in establishing itself as a credible institution, the ECB has been in a position to step into the breach during the crisis as a guarantor of stability and is now being asked to shoulder additional responsibilities.
This is a stark contrast from 2018 when inflation was pushed beyond the target range to average at 5.2 percent. Looking ahead, we expect inflation to remain on a target-consistent path for 2019 and 2020. BSP’s latest baseline forecasts indicate that inflation is projected to average 2.6 percent this year and 2.9 percent next year and 2021.