Latest indicators show that inflation is losing speed but risks remain. Global commodity prices are now starting to show some easing. However, we still need to remain cautious given the inherent volatility in commodity prices. The BSP remains confident that its current monetary policy stance could be accommodated by resilient demand conditions.
The buoyancy of domestic demand suggests room for measured interest rate action without causing serious effects on the real sector. Meanwhile, we have continued to institute reforms to further strengthen the banking system and deepen the domestic capital market.