For instance, comparison of the real GDP growth rate with the real short-term interest rate – although the latter varies depending on how the expected inflation rate is estimated – shows that while the GDP growth rate has been around 2 percent, the real short-term interest rate has been in the range of around 0-0.5 percent if the actual year-on-year change in the CPI is used as the expected inflation rate.
Let me remind everyone that the mandate of the BSP is price stability, and we are now moving more towards price and financial stability. We have the tools to pursue these. But, monetary and financial stability cannot be expected to do everything. It has been said, one cannot push on a string.