Subsequently, inflation started to moderate and fall to the middle of the target range of 3–5 per cent inflation. We are pleased about this outcome. Inflation management is a crucial function of the BSP as it provides the stability that our economy and its stakeholders need.
Even as uncertainties in global markets led to some capital flow reversals and depreciation pressures on the peso, we were able to maintain a strong external liquidity position. The current account sustained its surplus because remittances, receipts from the tourism and BPO industries remained strong.