via its effect on the term premium. when thinking specifically about qt, our decisions should rest on four principles. first, policy rates should remain the primary instrument to adjust our monetary policy stance. our balance sheet size should act as a “ backburner ” tool. second, app holdings should be distinct from pepp holdings. the former exclusively steers the monetary stance, while pepp continues to serve a dual purpose, by also countering fragmentation risks to monetary transmission. therefore, decisions about unwinding these two programmes do not have to run in parallel. i expect the app roll - off to start significantly earlier than that of pepp, for which reinvestment is communicated to last until the end of 2024. third, i see a case for caution. to me, this calls for an early but partial stop to reinvestments, to test the waters before calibrating the ultimate pace of the roll - off. and finally, qt should be predictable, like watching paint dry, as the saying goes. [ note 7 ] let me sum up. “ football is a simple game. twenty - two men chase a ball for 90 minutes and at the end, the germans always win. ” dixit gary lineker, former striker for england. the game we are currently playing is approaching halftime. and so far, the ecb has used several tactics to beat its opponent. between december 2021 and today, we started normalizing monetary policy. we did this by discontinuing net asset purchases under the pepp, reducing app volumes to pre - pandemic levels, and eventually ending all net purchases. and then we scored long - shot goals with interest rate hikes of 50 and 75 basis points. as we head into the second half, our game plan is likely to change from long shots on target to short passes and agile moves. so, it will become more likely that we slow the pace of interest rate increases, which also enables us to use the full palette of our instruments making our tactics more varied. our goal still being that we want to rule out the risk of persisting high inflation and avoid it becoming entrenched in people ’ s minds. gary lineker was not far from the truth when he uttered his famous quote. but it makes you wonder why. and i think it comes down to the dedication and determination of the mannschaft. to giving it all you have got. to play the game until the very final whistle. and

’ s banking sector outlook survey for the first semester of 2019, forecast double - digit growth in assets, loans, deposits and net income for the next two years. they also project capital and liquidity ratios to be maintained well beyond bsp requirements. these, among other findings, highlight the bullishness in the growth of the economy and the banking system despite global uncertainties. strategy - wise, the bankers prioritize growing their business by expanding their client base, investing in technology, and developing new products. they also intend to optimize the use of technology in their operations and customer relations to better serve the public and at the same time, achieve strategic efficiencies in their operations. amid domestic and global uncertainties, the banks plan to reach their growth objectives by 3 / 7 bis central bankers'speeches developing new capabilities to cope with the competition and the digital revolution. they also intend to expand market reach across geographical and digital frontiers while leveraging on existing client relationships. the bsp ’ s strategic reforms in the past decades have been aimed at ensuring the safety, soundness and resilience of the banking system. specifically, these reforms are being pursued to ( 1 ) strengthen risk governance within banks ; leverage on technology in finance and the use of artificial intelligence, which encourages digital innovations to flourish while ensuring effective management of risks, including protection of consumers ; ( 3 ) achieve greater and broader access to financial services to enable most filipinos to benefit from the growing economy and banking system ; ( 4 ) uphold the integrity of financial system and safeguard the interest of the public ; and ( 5 ) accelerate capital market reforms, including foreign exchange initiatives. the amendment of the bsp charter in february 2019 provided the bsp with, among others, a strengthened mandate to promote financial stability in addition to its existing monetary stability function. the amended charter also strengthened bsp supervisory function over money service and credit granting businesses and payment system operators. the amended charter and the national payment systems act provide a solid legal mandate to the bsp over the payment systems. these put the bsp in a strategic position to address potential risks arising from the interconnectedness of banks and these financial entities. moreover, the new bsp charter embodies a package of reforms that will further align its operations with global best practices and enhances its capacity for crafting proactive policies amid rising interlinkages in the financial markets and the broader economy. the bsp envisions itself as a world - class monetary authority