Of course, these factors are not necessarily mutually exclusive. Regarding factor (1), it is possible that population ageing may result in a decrease in the natural rate of interest through various channels – for example, a decline in demand for loanable funds by firms and households, while a lower expected permanent income induces households to accumulate more savings (Ikeda and Saito [2012]).
Following the industry’s proposal, the BSP issued Circular No. 1109 on February 4, 2021, which lowered to the minimum amount required to maintain an investment management account (IMA) and to participate in commingled funds to P100 thousand. The Circular also expanded the financial assets that a commingled fund can invest in.