The 180-day LIBOR could range at 0.8 – 1.8 percent for 2016 and 1.0 – 2.0 percent for 2017. Many central banks and IFIs believe that prolonged period of low interest rates will continue. Lastly, despite the weakness in external demand, we expect merchandise trade to show some modest improvements in 2016 – 2017.
To help in the attainment of the targets, the BSP is fully committed to ensure stability in the monetary, financial, and external sectors of the economy. On price stability, the BSP will closely monitor domestic and external developments to ensure that the monetary policy is appropriately calibrated.