targets have been revised. the government now projects gdp to grow by 5. 7 - 6. 6 percent while the forecast for inflation is at 9 - 11 percent. the bop surplus will reach us $ 2. 5 billion. exports are seen to grow by 5 percent while imports will expand by 10 percent due to higher prices of oil and food imports. what can you expect in terms of the bsp ’ s policy thrusts? the policy thrust of the bsp is aimed at ensuring that the headway that we have achieved in nurturing a resilient economy and a strong banking sector will continue. the bsp ’ s key monetary policy thrust will remain focused on promoting price stability. in its latest policy move, the bsp recognized the need for a more decisive monetary action to reduce the risks to inflation expectations and the long - term cost to output growth from prolonged high inflation. so our eye is on inflation because price stability is critical to sustained, durable economic growth. in the external sector, our policies will continue to be directed at maintaining a marketdetermined exchange rate with scope for occasional official action to address sharp volatilities in the exchange rate ; maintaining a comfortable level of reserves as selfinsurance ; and ensuring the sustainability of our external debt. in the financial sector, we remain firmly committed to institute key reforms that will lead to greater efficiency, effective risk management, stronger capital base and improved corporate governance standards in the banking system. given these reforms, we expect to see the continued expansion of bank resources and capital, as well as a further improvement in bank asset quality. we also envision a stronger and more resilient banking system as banks improve their ability to anticipate, price and manage risks. we will also continue to push for the passage of key legislations intended to develop a deep and efficient capital market as a complementary source of funds. this will make credit more accessible to a broader set of users and ensure a more efficient mobilization of resources. in summary, the bsp is prepared to take all necessary actions to address the threat of high inflation and promote price stability. we also continue to be mindful of the impact of any policy action on the economy ’ s growth momentum. the resiliency of our economy allows us to have greater flexibility in responding to the challenges that come our way. i am now ready to discuss the issues of particular interest to you. thank you.

the most vulnerable. in particular, microinsurance can protect the hard - earned gains of our microentrepreneurs. for this reason, starting in 2011, the prizes of cma winners include microinsurance. indeed, challenging times call for stronger partnerships. and to show our support and solidarity to our microentrepreneurs, we conducted here at the bangko sentral last week a three - day event which we called microfinance partnerships during challenging times. fellow advocates of microfinance, let us continue to enhance and strengthen our partnerships in support of our microentrepreneurs who have improved the lives of their families and generated employment for millions of filipinos. it is also noteworthy that our microentrepreneurs are also known for their generosity in helping other would - be entrepreneurs. they would readily share their stories and mentor others. last month for instance, the bangko sentral ’ s financial education lectures for 1, 700 teachers and principals of the department of education in kabankalan, negros occidental was made more memorable and inspiring by the sharing of local microentrepreneurs from negros. indeed, our microentrepreneurs have developed a culture of sharing. in words and in deeds, they inspire others who aspire to better their lives through microfinance. across our country, our microentrepreneurs prove that humble beginnings can lead to success beyond their dreams and sometimes even beyond our borders. once again, congratulations to our cma winners this year. mabuhay ang microfinance! mabuhay ang ating mahal na bansang pilipinas! maraming salamat sa inyong lahat! bis central bankers ’ speeches