It should, however, also be realised that such a policy stance does not provide unconditional protection against speculative capital outflows. External economic shocks or perceived poor policy measures can still trigger a reversal in capital movements. Monetary policy cannot prevent these reversals. International investors make their decisions on the basis of a wide variety of developments, including price stability.
Also, our financial digitalization initiatives, under the Digital Payments Transformation Roadmap, are enabling better payments processes and financial inclusion. Moreover, the Philippine central bank’s policies on sustainable finance are harnessing the ability of banks to drive a more sustainable future. Aided in part by the BSP’s measures, the economy is showing signs of solid recovery, as shown by the 5.6-percent GDP growth last year.