I will then explain why political risks cannot be addressed in the same way as economic risks. Central banks should not prejudge political outcomes through their actions. Rather, they should address their effects if and when they become visible in the economic and financial data that are relevant for their price stability mandates.
Earlier, we talked about the Government’s thrust for infrastructure. Part of BSP FINfrastructure agenda is collaborating with other government agencies and industry stakeholders to deepen the local currency debt market, given its vital role in complementing bank lending to support longterm financing requirements of corporates and the Government, particularly for its “Build, Build, Build” program.