virtually unchanged for the time being while restraining forces such as excessive labor input and debt persist. furthermore, the downside risk on the outlook for the u. s. and other overseas economies continues to require attention, given that there are some uncertain factors including geopolitical developments and their economic implication. on the domestic side, stock prices remain unstable. hence, the progress in the disposal of non - performing loans and its effects on stock prices, corporate finance, and the economy, should be carefully monitored. on the price front, import prices are on the rise reflecting the earlier firmness in oil prices and depreciation of the yen. domestic wholesale prices turned up slightly due to the increase in import prices and the improved supply - demand balances in the materials industries, although machinery this report is based on data and information available at the time of the bank of japan monetary policy meeting held on december 16 and 17, 2002. the bank ’ s view of recent economic and financial developments, determined by the policy board at the monetary policy meeting held on december 16 and 17 as the basis for monetary policy decisions. prices and electricity charges are declining. however, consumer prices remain on a gradual downtrend and corporate services prices continue to decline. looking at the conditions influencing price developments, import prices are projected to be firm for the time being as the effects from the rise in oil prices and the depreciation of the yen still remains. however, the overall supply - demand condition is expected to keep exerting downward pressure on prices for a while amid persistently weak domestic demand, although the completion of inventory adjustment and the rise in capacity utilization rates will support prices to some degree. moreover, factors such as the ongoing technological innovations in machinery, deregulation, and the streamlining of distribution channels will continue to restrain prices. under these circumstances, domestic corporate goods prices, the new price indicator which will replace domestic wholesale prices from december, are expected to be virtually level for a while. consumer prices are expected to stay on a declining trend for the time being at the current gradual pace. while the growth in imports of consumer goods has stalled and thus is expected to alleviate the downward pressure on prices to some extent, the faster pace of decline in wages may possibly reinforce the ongoing decline in prices, especially for services prices. as for the financial environment, the outstanding balance of the current accounts at the bank of japan is recently moving at around 20 trillion yen, as the bank provides further ample liquidity. under these circumstances

as the country transitions from one administration to another - and this will take place on july 1st - the bangko sentral ng pilipinas will continue to fulfill its mandate of ensuring sound macroeconomic management. on the whole, there are clear signs that the new administration will continue the key reforms and programs of the outgoing administration. as the economy recovers, the central bank recognizes the need to scale back its extraordinary measures. the timing and conditions of the bsp ’ s exit strategy will continue to be guided by the inflation and growth outlook over the medium term, the state of public health, and domestic and global risks to the economy. earlier, the bsp provided provisional advances to the national government of p540 billion – or approximately usd10. 3 billion - in 2020 and 2021. it was down to p300 billion as of january 2022. and to date, the national government has fully paid the central bank ’ s advances to the national government. unwinding the extraordinary measures was one of the messages highlighted during the imf - word bank spring meetings held last april. balancing the need to safeguard economic recovery and controlling inflation would be a key challenge for policymakers going forward. the balancing act requires a well - planned, well - calibrated, and well - communicated exit strategy to avoid causing substantial market volatility, reduce potential spillovers, and continue the recovery momentum. for the philippines, economic recovery came sooner than expected. the economy grew by 8. 3 percent in the first quarter of this year. we expect the economy to grow much faster in q2, making the growth target for this year of 7. 0 - 8. 0 percent doable. moreover, employment is nearing its pre - pandemic rate. in response to these developments, we have started the normalization process. we recently raised the policy rate by 25 basis points to 2. 25 percent last may 19. for the philippines, economic recovery came sooner than expected. the economy grew by 8. 3 percent in the first quarter of this year. we expect the economy to grow much faster in q2, making the growth target for this year of 7. 0 - 8. 0 percent doable. moreover, employment is nearing its pre - pandemic rate. in response to these developments, we have started the normalization process. we recently raised the policy rate by 25 basis points to 2. 25 percent last may 19. the government ’ s fiscal space allowed it to spend massively