In the euro area, liquidity was made available in virtually unlimited amounts – against eligible collateral – and at increasingly longer tenors, which helped those banks that were being denied access to market refinancing to remain in business and keep their key intermediation function.
Viewed in this light, Moody’s confirmation of the Philippines’ credit rating of “Baa2” with a “stable” outlook should be seen as a resounding vote of confidence for the country. The BSP reiterates its commitment to use its entire arsenal of policy tools and instruments in a timely and prudent manner to help cushion the economy from the potential fallout.