Bangko Sentral ng Pilipinas (BSP) Governor Eli M. Remolona Jr. emphasized the importance of developing and deepening Philippine capital markets during the Philippine Economic Briefing (PEB) held on May 27 at the Philippine International Convention Center.
“Hand in hand with the government, we are pushing on multiple fronts to deepen our capital markets. Such deepened markets will enhance our transmission mechanisms for monetary policy and make our financial system more resilient,” Governor Remolona said in a video message.
He highlighted that expanding the country’s capital market would diversify funding sources for investments, businesses, and the economy.
At the same event, Governor Remolona addressed inflation, noting that it has been on a downward trend from a peak of 8.7 percent in January 2023 to 3.8 percent in April 2024, within the government’s target range. “We faced unusual supply shocks, which have been large and relentless,” he explained.
“Our banks are well capitalized and flushed with liquidity. They are in a good position to continue to support growth,” Remolona added.
He also stressed the BSP’s efforts to digitalize and improve the payments and settlements system, benefiting big investors, small businesses, and Filipino families with increasingly digital transactions.
The Governor underscored that the PEB’s theme, ‘PH On-the-Go: Fast-Tracking Economic Progress,’ is reflective of the country’s projected economic growth of 6.0 to 7.0 percent this year.
“Progress is not just about growth. We want this growth to improve the lives of most of our people,” he added.
BSP Senior Assistant Governor Iluminada T. Sicat participated in a panel discussion on “Shaping a Macroeconomic Landscape Conducive for Investments” alongside Finance Secretary Ralph G. Recto, Budget Secretary Amenah F. Pangandaman, Socioeconomic Planning Secretary Arsenio M. Balisacan, and International Monetary Fund Resident Representative to the Philippines Ragnar Gudmundsson.
SAG Sicat mentioned that the BSP expects inflation to revert to the target range after a rise from May to July. “At the end of the year, based on our risk-based adjusted outlook, we foresee inflation reverting back to within the target range,” she said.
Also present at the PEB were Presidential Adviser for Investment and Economic Affairs Frederick D. Go, Trade Secretary Alfredo E. Pascual, Public Works Secretary Manuel M. Bonoan, Transportation Secretary Jaime J. Bautista, Agriculture Undersecretary Asis G. Perez, Information and Communications Technology Undersecretary Jeffrey Ian C. Dy, Energy Assistant Secretary Mario C. Marasigan, and Private Sector Advisory Council member and Ayala Corporation Inc. Independent Director Rizalina Mantaring.
