To address these, the BSP expanded the allowable collateral for its repo facility; relaxed the valuation on these collaterals, increased the budget of its e-rediscounting window, reduced reserve requirements, and provided dollar liquidity in the spot and swap FX markets.
We believe these moves, in tandem with extensive and comprehensive communication of our policy intent to key stakeholders, helped to shore up confidence in the financial markets during that critical period. That relative stability exhibited by the financial markets then was critical in cementing the environment that allowed the economy to post a within-trend GDP growth and single digit inflation in 2008.