for transactions using specific collateral – which are driven by the need to source a specific security – have seen some delayed and partial adjustments, which has reflected increased demand for short - term secure investments. to prevent an abrupt outflow of deposits into the market at a time when euro area repo markets were experiencing collateral scarcity, the ecb ’ s governing council on 8 september 2022 decided to temporarily remove the 0 % interest rate ceiling for remuneration of government deposits. [ 32 ] this measure has helped reduce tensions in secured money markets. looking forward, we remain attentive to the spread between different money market rates as well as collateral scarcity concerns. chart 8 : money market rate ( €str ) and dfr ( percentage per annum ) source : ecb. the latest observation is for 30 september 2022. the risk - free curve the €str forward curve, which reflects the market pricing of the future path of short - term interest rates, has shifted up since december 2021. at the time of the december meeting, the €str forward curve signalled no material expectations of a rate hike throughout 2022 ( chart 9 ), which was also reflected in the survey of monetary analysts ( sma ) available at the time. in line with the evolving inflation outlook and shifts in the monetary policy stance, rate expectations had already moved up sizeably by the time of our first rate hike in july, and have moved up further since. [ 33 ] as the €str curve has shifted upwards, a noticeable gap between the number of hikes reflected in market pricing and surveys has opened up. this gap can be attributed in large part to risk premia in the market pricing. chart 9 : €str forward curve and survey expectations on the deposit facility rate ( percentages per annum ) sources : bloomberg, refinitiv, and ecb calculations. notes : the dots depict the median of responses to the sma on most likely future deposit facility rates. surveys are adjusted for the €str vs. dfr spread. the latest observation is for 7 october 2022 for realised €str. moving beyond the front end of the curve, the transmission of our policy normalisation has also materialised in a gradual upward shift in the term structure of the risk - free curve over the broader maturity spectrum ( chart 10 ). while the increases at the short end have largely reflected actual and expected nearby rate decisions, the longer end has also been influenced by our decisions on asset

. the move disrupted businesses and constrained mobility and caused the economy to contract in the first half of the year. but it helped delay the spread of the virus as it allowed for the gradual expansion of the country ’ s healthcare capacity. to help stimulate the economy, the bsp ’ s monetary board cut the policy rate by a total of 175 basis points in a span of five months, bringing the key policy rate to an all - time low of 2. 25 percent. 1 / 4 bis central bankers'speeches in addition, the monetary board gave me authority to cut the reserve requirement ratio by a total of 400 bps this year. so far, i have cut it by 200 bps to 12 percent. these actions are meant to encourage banks to increase lending to households and businesses, and, consequently, pump additional liquidity to stir economic activity. as a result, from april to august 2020, we have seen a 1, 040 percent growth in the average daily balance of banks ’ loans to msmes. in sum, the total amount of additional liquidity injected into the system from these collective measures is estimated at php 1. 4 trillion, equivalent to 7. 3 percent of gdp. still, our toolkit is far from exhausted, and we stand ready to do more if needed. speaking of toolkit, the bsp is set to issue our own debt securities starting today. this will be an additional monetary policy instrument under the interest rate corridor ( irc ) framework. the use of bsp securities for liquidity management supports the shift to more market - based monetary operations. it also allows the bsp to conduct monetary operations in line with international central banking practice. to say that the past six months have been challenging is a gross understatement. but we cannot be fixated with the here and now of the current crisis if we want the philippines to be one of the leading emerging economies in the post - covid era. the right attitude is that while the national leaders and health authorities worry about the pandemic, we must look beyond the challenges of the present situation. this early, we must lay the groundwork for stability and prosperity in the medium and long run. accordingly, we are working hard for the passage of various legislative measures that will provide support and relief to industries that are heavily affected by this pandemic and help the economy rebuild better. the financial institutions strategic transfer bill ( fist ) shall provide for the creation of a system that will insulate banks from