Although it may be comfortable for markets to have certainty around the short-term repo rate path, the real priority for the larger economy is fostering confidence that inflation will be well behaved over the medium and long terms. To this end, we implement monetary policy through flexible inflation targeting.
The Executive Department is pushing for other structural reforms, such as, the opening up of more sectors to foreign investments, forging of free-trade agreements with more countries, and more tax reforms, among others. Amid the policy reform momentum, the Philippines is expected to graduate into an upper middleincome economy this year.