Higher yet responsible fiscal spending targeted at further enhancing economic potentials could support sustained growth. Timely implementation of supply-side measures would also help keep prices manageable. The country’s banking system remains healthy and fundamentally sound, serving to effectively intermediate funds to finance the needs of the various economic sectors.
We also introduced a new Term-Loan Facility for those financial institutions that participate directly in the Large Value Transfer System, taking their non-mortgage loan portfolios as collateral. Last week, the Bank announced a new term PRA facility for private sector instruments that expands on the private sector term PRA facility that we set up last autumn for money market instruments.