In more practical terms, the BSP’s moves to reduce interest rates and reserve requirements to manage inflation also provide banks with more incentives to lend to borrowers – such as households and businesses, at lower rates. Global analysts have noted this recent decline of inflation, with Bloomberg citing the Philippines for outperforming other markets in terms of bond yields.
More specifically, the interest rates of our bonds, minus inflation, provide greater real interest income for global investors compared to other countries. The relative stability of the Philippine peso likewise showcases our strong macroeconomic fundamentals.