Cross border capital flows, as a percentage of global GDP, also rose from about five per cent in the mid-1990s to about 20 per cent in 2007. The ratio fell sharply as the crisis emerged but global capital flows have recovered since then.
As inflation risks moderate, the BSP will carefully consider opportunities for monetary policy easing amidst potential tightening financial conditions. We will also continue to ensure appropriate levels of market liquidity to maintain the efficient functioning of the financial markets. Through this, we hope to provide the necessary conditions that will allow economic growth to continue.