, especially with the prospect of lower global growth? from indications, there may be no need at this time for economic stimulus from monetary policy. the government has fiscal space. as they did in q2, government should step up spending on the vital infrastructure needed for economic growth to be sustainable. the forthcoming election spending, though a one - time shot in the arm, could also provide economic stimulus. what the bsp will do to help raise the growth trajectory – in addition to ensuring a low and stable inflation environment – is to further enhance banking sector policy to cement the strength of the banking system. the bsp will also continue to pursue market reform to help establish the financial market infrastructure for the efficient intermediation of funds between fund sources and users. neda projects that a more realistic economic growth rate for 2015 is 6 – 6. 5 pct. it is comforting that even at these levels, the philippines would likely still be among the fastest growing economies in the region. conclusion ladies and gentlemen, i ’ ve covered a lot of ground this afternoon. let me summarize by saying : the bsp is watchful of domestic and external conditions. and, we are ready to take the appropriate policy actions, as and when needed, to minimize the potential adverse impact of risks to the economy. in the pursuit of creating growth opportunities for the economy, the bsp continues to look to the whole market ’ s continued support. i know market players live for volatility. it is what gets your juices going. but let me just provide some words of advice : these are not your typical “ vols. ” there is not necessarily any historical price action that you could confidently go back to, to calculate your vars. therefore, be very careful of any new products and markets that you are looking to deal in. be sure you understand these well. have the necessary credit, market and operational risk mitigants in place. finally, this is not a bout of volatility that is likely to go away quickly. so, if you are in this game for the long haul, you need to temper animal spirits with a healthy dose of reflection and humility. i think i ’ ve said enough for now. let me end here. i wish you all well. thank you for your attention. bis central bankers ’ speeches

##dic guarantees ) that currently cannot be raised from market sources, allowing the funds to increase their purchases of legacy assets. these facilities are structured to give the government a share of any gains in the value of assets purchased while protecting the private - sector investors from some of the downside risks inherent in real estate credit at present. by providing such protection along with leverage that is unavailable in markets today, the government hopes to bolster demand for these assets and restart markets in them. taken together, these financial repair programs are a comprehensive and substantial effort to help financial institutions resume lending and so support economic activity. banks worried about the adequacy of their capital have been reassured by the capital provided by the treasury, and they may also be more optimistic about their ability to raise private capital once they have shed legacy assets. at the same time, concerns about the availability of funding should be eased by access to government - guaranteed funding options. moreover, as i noted at the outset, these programs need to be viewed as complementing the monetary, fiscal, and other policies put in place to alleviate financial strains and support aggregate demand. indeed, when i think back to the exceedingly perilous financial situation last september and october, i judge the efforts at financial repair as at least a qualified success. risk spreads in bank funding markets have narrowed, and the liquidity positions of many institutions have improved. despite significant pressures on many financial firms, we have generally avoided fire sales of assets by institutions that were troubled or were anticipating trouble. despite this progress, financial markets remain very fragile, lenders are still very protective of their capital and liquidity, risk spreads remain elevated, and many segments – especially securitization markets – continue to be impaired. however, some of the government programs i have discussed – those to restart markets, provide additional capital buffers, and open outlets for legacy assets – are just now being implemented. while these programs are quite promising, we will not be able to judge their success at restarting lending for a time. foreclosure mitigation another way that the government has intervened to limit the spillovers of financial problems to the real economy, and vice versa, is by taking steps to reduce unnecessary foreclosures. most notably, the treasury recently announced the making home affordable program that will provide financial incentives to encourage lenders and servicers to refinance existing mortgages with new mortgages having lower payments, thereby helping at - risk homeowners to avoid forecl