The median assessment of FOMC participants fell from around 5-1/2 percent five years ago to 4-1/2 percent in the projections published last month. Outside estimates, such as those from the Congressional Budget Office and the Blue Chip Economic Indicators survey, show a similar pattern of downward revisions. This makes sense.
The BSP will also continue to stabilize financial conditions through reforms that will foster healthy financial balance sheets. We will guard against systemic failures through liquidity provision when necessary, while keeping inflation under control. This will ensure the effective functioning of transmission channels for monetary policy. In turn, this should reinforce confidence in the financial markets and in the economy as a whole.