But there is increasing uncertainty arising from tensions in world trade as well as the risk of volatility in the financial markets and in certain emerging economies, and we have to take all that into account.
Likewise, we are cognizant that financial stability is essential for monetary policy to be effective since the fragility of the financial sector can affect the transmission of monetary policy to the real economy. Because of long-term structural reforms, the Philippine financial system, with the banking sector at its core, continues to be a source of strength and stability for our economy.