The BSP has undertaken an aggressive monetary policy response to address the adverse spillovers associated with the ongoing pandemic. With a manageable inflation environment and stable inflation expectations, the Monetary Board sees enough policy space for an assertive reduction in the policy rate to cushion the country’s growth momentum and uplift market confidence amid stronger headwinds.
To date the contribution from the implementation of public works has been limited; it must be boosted. The curb on public expenditure must not penalize firms in the weakest parts of the country. New prospects must be created for research, for the application of advanced technologies in production and for the development of alternative energy sources. It is necessary to increase confidence.