The liquidity and demand support provided by monetary policy has countered the downturn and aided the reversal of the financial cycle, thus preventing it from morphing into a chronic credit crunch with persistent dangers for price stability. Taken together, the ECB’s two pillar strategy thus features key elements that facilitate a leaning-against-the-wind approach.
Let me share some insights on the Philippine economic outlook for 2021 and the BSP’s policy actions to support the national government’s whole-of-nation approach in addressing the current crisis. Multilateral agencies such as the International Monetary Fund, the World Bank, and the Asian Development Bank expect the Philippine economy to expand by 5.9 to 6.6 percent this year.