In addition to such direct effects, other more indirect effects are also putting downward pressures on prices. For example, increased imports from lowcost countries may have moderated import prices and mark-ups on goods imported from high-cost trade partners, as well as put downward competitive pressures on euro area domestic profit margins, prices and wages.
There is also a rise in public confidence in making electronic payments and in using digital channels, a clear culture change! So how do we keep up? While correspondent banks are concerned with digitalizing its services and leveraging on technology to facilitate cross-border trade, remittance flows and payment and settlement transactions, the BSP is also on its toes.