the view that the prospects for domestic demand remain firm, to be supported by a projected recovery in household spending and the continued implementation of the government ’ s infrastructure program. in addition, the mb observed that the global economic growth momentum has slowed down in 2019. meanwhile, indications of slower growth in domestic liquidity and credit require careful monitoring. at the same time, the mb also noted that the risks to the inflation outlook remain broadly balanced for 2019 amid risks of a prolonged el nino episode and higher - than - expected increases in global oil prices. for 2020, the risks continue to lean toward the downside as weaker global economic activity could temper commodity price pressures. looking ahead, the bsp will continue to monitor developments affecting the inflation outlook to ensure that the monetary policy stance remains consistent with its price stability objective. on the other hand, the passage of republic act no. 11211, or an act amending republic act no. 7653, known as the ‘ new central bank act ’ ( signed on 14 february 2019 ) is a significant milestone for the bsp. our three pillars of central banking, that of price stability, financial stability, and an efficient payments and settlements system, were further strengthened with the expansion of the bsp ’ s policy toolkit. the law restored the central bank ’ s authority to issue its own debt papers as part of its regular monetary operations, establishes a stronger prudential regulatory framework to promote a safe and sound financial system through the expansion of supervisory coverage, and authority to prescribe metrics attuned to international standards and practices. the amendment likewise empowers further the bsp to oversee the country ’ s payment and settlement systems ( pss ), including critical financial market infrastructures that are vital components of the pss. additional notes : the amended bsp charter restores the central bank ’ s authority to obtain data from any person or entity from the private and public sectors for statistical and policy development purposes in line with the pursuit of our triad mandates. the law authorizes the increase in the capitalization of the bsp from php 50 billion to php 200 billion, which shall be sourced from dividends declared by the bsp in favor of the national government. under the amended charter, the bsp is also exempt from paying taxes on income derived from its governmental functions. these reforms place the bsp on a stronger position to pursue its mandate amidst a growing economy and the increasing sophistication of the financial system. looking ahead, we will continue

in the overnight reverse repurchase ( rrp ) volume offering — this encourages counterparties to lend in the interbank market or re - channel funds into loans or gs ; p300 billion worth of repurchase agreement with the national government ; a 200 - basis - point cut in the reserve requirement ratios of universal and commercial banks, as well as non - bank financial institutions with quasi - banking functions ( nbqbs ) ; counting of loans to micro, small, and medium enterprises ( msmes ) as part of banks ’ compliance with reserve requirements ; suspension of the term deposit facility auctions for certain tenors ; temporary reduction to zero in the term spread on the peso rediscounting loans relative to 1 / 2 bis central bankers'speeches the overnight lending rate ; time - bound relaxation of various regulations pertaining to compliance reporting, calculation of penalties on required reserves, and single borrower limits ; and the bsp stands prepared to use its full range of monetary instruments and to deploy regulatory relief measures as needed in line with its price and financial stability mandates. with all these measures, the bsp, as the country ’ s monetary authority, together with fiscal authorities and other departments, aim to manage a soft landing for the philippines and to ensure that an economic takeoff begins quickly once the pandemic fades. the market seems to be responding favorably. the peso is fairly stable, the stock market has bounced back from recent lows, and cds spreads of philippine government bonds remain competitive. if financial markets — which are sometimes inclined to have kneejerk reaction — are showing some signs of confidence at this challenging time, then there is basis for everyone to be ( cautiously ) optimistic as well. in closing, i would like to highlight that the philippines has entered this difficult time with sufficient tools and buffers. we have sound macro economic fundamentals, a stable banking sector, and the much needed fiscal and monetary space, which allow us to roll out significant relief and mitigating measures while keeping the economy afloat. these buffers, plus the relief and mitigating measures from the bsp and the national government, allow us to look forward to the time when the philippines will be firing on all cylinders again. thank you very much, and i look forward to answering your questions. 2 / 2 bis central bankers'speeches