There is a need to strike an optimum balance between these two objectives which will give a boost to the IMF’s credibility. •  The issue of even handedness is inextricably woven into the IMF’s governance structure. Modernizing surveillance must flow from and cannot precede reforms in governance.
On the inflation front - the February inflation rate of 7.6 percent, although higher than the January figure, is within the BSP’s forecast range for the month. Thus, the rate is still consistent with our projected path for inflation, which shows a decelerating trend beginning the second half of 2006.