with recent survey evidence. with pipeline pressures remaining significant, a still historically large share of firms in the manufacturing, retail and services sectors plan to raise prices further over the coming months ( slide 8, left - hand chart ). of course, such surveys say nothing about the size of future price increases, meaning inflation could still slow. however, the surveys do not signal a fast unwinding of price pressures on the back of the expected decline in aggregate demand. uncertain inflation outlook calls for “ robust control ” approach to monetary policy the implication for monetary policy is unambiguous : it would be imprudent for a stability - oriented central bank to chart the future course of interest rates on the assumption that a slowdown in demand will reduce the need for adjusting the monetary policy stance. today ’ s energy shock affects potential output directly through its impact on productivity and the capital stock. together with historically tight labour markets, this makes it unlikely that the euro area economy will operate under much economic slack over the medium term. on the contrary, if the hit to the supply side is significant, there is even a risk that the output gap turns positive earlier than expected despite weakening demand. recent inflation dynamics underscore these risks. although surveys have been pointing to a sharp slowdown in demand for several months now, underlying inflation continues to rise in the euro area. trimmed mean inflation, which is a good indicator of underlying inflation at a time of persistent energy and food shocks, increased to 6. 9 % in august, similar in scale to the situation in the united states ( slide 8, right - hand chart ). uncertainty about the persistence of inflation therefore continues to call for a “ robust control ” approach to monetary policy, which reduces the risks that medium and long - term inflation expectations move further away from our 2 % target. the pivotal role of inflation expectations in driving a potential wageprice spiral reinforces this approach. my remarks today demonstrate that such a “ robust control ” approach is firmly guided by the mediumterm inflation outlook. although the outbreak of the pandemic, and the war in ukraine, have measurably reduced the ability of central banks and other professional forecasters to correctly anticipate the broad future path of inflation, long and variable lags in the transmission of monetary policy still require policy to be calibrated on what central banks think is the most likely future course of the economy, also taking into account the impact of their own actions on aggregate demand and price formation.

the parallel market to the formal market. we have streamlined fx requirements for the banking system to reduce market fragmentation and increase fx liquidity. we expect responsible behavior among market players. we have a collective responsibility to consistently build our markets to rise above the desire for short - term gains. on the regulatory front, we are pursuing continuous improvement aligned with global standards and best practices. the bsp is rolling - out the enhanced liquidity risk management framework. we are prescribing guidelines on the adoption of accounting standards to promote transparency and fairness in both financial and prudential reporting. the bsp is also continuously working to ensure that financial industry participants are sensitive to, and proactive in, addressing emerging cyber threats. we are enhancing as well our aml - cft compliance posture. the bsp continues to create a supportive policy environment for financial inclusion. banks are now allowed to use third party cash agents for increased on - boarding of the unbanked. we allow reduced know - your - customer ( kyc ) rules for certain low - risk accounts and use technology for face - to - face contact requirements to promote bank account ownership. we have created the framework for opening basic bank accounts. the bsp is also working closely with the national government for the implementation of a biometric - based national identity system to facilitate maximum access to financial services. we are also making big leaps in developing the country ’ s payment system even as we continuously improve the existing arrangements. today, we are capable of producing 43 million pieces of high quality currency notes per month, up from just 6. 5 million pieces 25 years ago. we also produce 200 million pieces of coins per month. our real time gross settlement system, philpass, processes 6, 000 transaction valued at php 1. 4 trillion per day. but we are upgrading it further to do more as we roll out the national retail payment system that will pave the way for the digitalization of our financial system. already, we have together launched pesonet and instapay. more inter - operable and cooperative payment schemes will follow soon. closing remarks as i close, i remind that as market stakeholders, to better navigate a more interconnected and sophisticated financial market system, we must be mindful of changes that are reshaping it. we must embrace the work that needs to be done, to stay... not only abreast, but ahead of developments. this task of navigation is, and has, never been an easy