Whether this improvement in overall financial conditions is a precursor to sustained recovery in the broader economy is unclear. Fortunately, for the longer term, productivity growth in the United States has remained remarkably robust. Rapid growth of output per hour boosts expectations of future advances in wages and profits, leading eventually to higher aggregate demand.
On the financial sector: the BSP will intensify its monitoring and surveillance over its supervised institutions to ensure that they remain resilient to emerging risks and continue to be sound, stable, and inclusive, particularly through the pursuit of enhanced digitization.