The Financial Stability Coordination Council (FSCC) held its 39th Executive Committee meeting to evaluate offshore market trends and their potential impact on the stability of the Philippines’ financial system.
Despite global market volatility indicators remaining low, the FSCC noted significant fluctuations in global oil prices and persistent high inflation in the US. This environment suggests a “high-for-long” interest rate scenario, potentially influencing global economic stability. Additionally, ongoing geopolitical tensions could further affect the financial landscape.
In contrast, the Philippines shows robust economic growth, ranking among the highest worldwide. Recent data indicate that full-year inflation is unlikely to exceed the upper end of the forecast band, offering reassurance for the country’s macro-financial trajectory.
“We find comfort in the broad indications of stability and their effects on the economy. These are issues that the FSCC will continue to monitor,” stated FSCC Chairman and Bangko Sentral ng Pilipinas (BSP) Governor Dr. Eli M. Remolona, Jr.
Dr. Remolona also emphasized the challenges posed by energy price volatility and prolonged high global interest rates on debt servicing, which the FSCC will closely monitor and address if necessary.
The FSCC, an inter-agency body including the BSP, the Department of Finance, the Insurance Commission, the Philippine Deposit Insurance Corporation, and the Securities and Exchange Commission, was formalized under Executive Order No. 144 after the Global Financial Crisis.
