Bangko Sentral ng Pilipinas (BSP) Governor Eli M. Remolona, Jr. emphasized yesterday the crucial role of developing and deepening the Philippine capital markets for the country’s economy’s growth.
Photo shows Euben Paracuelles (leftmost), Nomura Chief ASEAN Economist, while facilitating the panel discussion. Joining him were (starting at 2nd from left:) Iluminada T. Sicat, BSP Senior Assistant Governor; Budget Secretary Amenah F. Pangandaman, Finance Secretary Ralph G. Recto, Socioeconomic Planning Secretary Arsenio M. Balisacan, and Ragnar Gudmundsson, IMF Resident Representative to the Philippines.
“Collaborating closely with the government, we are advancing on multiple fronts to enhance our capital markets. Such advancements will improve our monetary policy transmission mechanisms and strengthen our financial system’s resilience,” Governor Remolona stated in a video message presented at the Philippine Economic Briefing (PEB) held last May 27 at the Philippine International Convention Center.
He added that a deeper capital market would provide the Philippines with diversified funding sources for investments, businesses, and the broader economy.
During the event, the BSP Governor also addressed inflation management: “We have faced significant and persistent supply shocks. However, from a peak of 8.7 per cent in January 2023, inflation has generally been on a downtrend, with the latest rate in April 2024 at 3.8 per cent, within the government’s target range.”
“Our banks are well-capitalized and liquid, positioning them to continue supporting growth,” he further stated.
Digitalizing the financial system
During the briefing, the BSP governor also highlighted the government’s ongoing initiatives to digitalize the country’s financial system aimed at enhancing payment and settlement systems, which would benefit large investors, small businesses, and Filipino families through increasingly digital transactions.
He said that the PEB’s theme, “PH On-the-Go: Fast-Tracking Economic Progress,” is a genuine reflection of the country’s projected economic growth of 6 to 7 per cent this year. “Progress is not just about growth; it is about improving the lives of most of our people,” he added.
For her part, BSP Senior Assistant Governor (SAG) Iluminada T. Sicat participated in a panel discussion on “Shaping a Macroeconomic Landscape Conducive for Investments” with Finance Secretary Ralph Recto, Budget Secretary Amenah F. Pangandaman, Socio-Economic Planning Secretary Arsenio M. Balisacan, and IMF Resident Representative to the Philippines Ragnar Gudmundsson.
SAG Sicat mentioned that the BSP expects inflation to revert to the target range after a projected rise from May to July. “By the end of the year, based on our risk-adjusted outlook, we foresee inflation returning within the target range,” she said.
Also attending 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, ICT Undersecretary Jeffrey Ian C. Dy, Energy Assistant Secretary Mario C. Marasigan, and Private Sector Advisory Council (PSAC) member and Ayala Corporation Inc. Independent Director Rizalina Mantaring.
