The BSP observed that economic growth appears to be gaining traction amid improved mobility and sentiment due to the calibrated relaxation of quarantine protocols and continued progress in the government’s vaccination program.
Nevertheless, given the ongoing recovery, the priority of the BSP continues to be maintaining policy support for the domestic economy and avoiding a premature exit from pandemic-relief response measures to prevent long-term economic scarring. The prevailing policy stance is also supported by a manageable inflation outlook and anchored inflation expectations.