Other measures in the pipeline include those related to Basel 3 reforms. The BSP will also remain alert to possible threats to financial stability, including those associated with the build-up of leverage among households and firms, as well as banks’ exposure to the real estate sector.
To mitigate these risks, the BSP will continue to its mix of micro- and macro-prudential tools as well as surveillance mechanisms, taking in consideration their potential impact on liquidity and overall financial conditions. Concluding remarks Ladies and gentlemen, disinflationary pressures and divergence are just two of the key economic issues that are likely to pose challenges for central bank like the BSP.