Once again, ladies and gentlemen, we at the Bangko Sentral ng Pilipinas thank and congratulate all of you for being our active partners in the pursuit of our mandate and in making lives better through better policies and programs. Together, let us steer the economy toward balanced, sustained and inclusive growth. Maraming salamat sa inyong lahat! Mabuhay ang ating mahal na bansang Pilipinas!
But the credibility gains from inflation targeting seem to me to be inversely related to its flexibility. Simply, credibility is less likely to be gained and expectations are less likely to be anchored if the central bank frequently uses escape clauses, widens the target bands, or pushes out its time horizon.