In addition, financial markets, which became highly volatile in spring 2020, have regained stability on the whole. However, there continues to be high uncertainty regarding the impact of COVID-19 on domestic and overseas economies.
The overall belief in the Philippines is that inflation targets are missed in the Philippines because of external and supply shocks, for which policy rates are not the most effective tools. So why did we raise rates? The first answer to that question is we would have raised it anyway as part of our normalization.