With GDP growing at 12.0 percent in the second quarter and 7.1 percent in the third quarter of this year, we can say that the economy is well into the recovery process. The effectiveness of interventions is evident in the sustained decline in domestic market interest rates, which have decreased in parallel with the BSP’s policy rate.
For example, the average interbank call loan rate of 1.7 percent (as of October 2021) represents a 222-basis point decline relative to January 2020. Similarly, the 91-day T-bill rate as of September 2021 fell by more than 200 basis points over the same period. Bank lending growth is also picking up.