financial stability, the bsp will continue efforts to safeguard the domestic financial system and help manage risks attendant to financial market developments. the goal is to strengthen the regulatory regime to ensure responsible risk - taking by financial institutions. we are also stepping up advocacy efforts to promote financial learning and microfinance to more sectors and areas across the country. finally, in the area of payments and settlements, we will remain proactive in ensuring the safety and timely completion of financial transactions by minimizing systemic risks and enhancing the integrity of financial processes through progressive policies on e - commerce and innovations. the growth narrative of the philippine economy has gone a long way. the transformation that the domestic economy underwent before achieving its current state, has been arduous, and at times, painful, but nevertheless rooted on solid structural underpinnings and macroeconomic policy discipline. in closing, while the philippine economy is not immune from risks in the global market, it is well insulated. in a global environment where risk sentiment is fragile and uncertainty is permanent, we are confident to say that the philippines still provides a unique value proposition that is not fleeting, but anchored on a dynamic track record of changing for the better. at the same time, we need to ensure that this growth performance continues over the longer term so that the next generation of filipinos will likewise enjoy years of economic prosperity. in this regard, a sustained commitment to pursue the government ’ s infrastructure and reform agenda will support high, inclusive, and sustainable growth. for its part, the bsp remains committed to the effective pursuit of its mandates for the country ’ s continued, balanced, and sustainable growth which ultimately will improve the life of every filipino people. thank you and mabuhay! 4 / 4 bis central bankers'speeches

billion dollars, equivalent to 7. 4 months ’ worth of imports of goods and payments of services and primary income. meanwhile, overseas filipinos ’ remittances remained robust in the first half of the year, increasing by 3. 2 percent, which is equivalent to us $ 14. 6 billion. taking all these into account, the monetary board in its most recent meeting on 8 august 2019, deemed it necessary to reduce the bsp ’ s key policy rate by another 25 basis points to 4. 25 percent. this brings the year - to - date monetary policy adjustment to 50 basis points. in doing this, the bsp noted that price pressures have continued to dissipate, while prospects for global economic activity are likely to remain weak amid sustained trade tensions among major economies. domestically, the outlook for growth continues to be firm on the back of a projected recovery in household spending and the accelerated implementation of the government ’ s infrastructure spending program. 2 / 4 bis central bankers'speeches looking ahead, we expect inflation to remain on a target - consistent path for 2019 and 2020. the latest baseline forecasts indicate that inflation is projected to average 2. 6 percent for 2019 and 2. 9 percent for both 2020 and 2021. inflation expectations have also moderated further to levels consistent with the target based on the bsp ’ s survey of private sector economists. we assess the balance of risks to the inflation outlook to remain broadly balanced for 2019 and 2020, before tilting to the downside for 2021. weaker global economic prospects continue to temper the inflation outlook. going forward, the bsp will continue to monitor price and output conditions to ensure that monetary policy remains appropriately supportive of sustained non - inflationary economic growth over the medium term. in terms of financial stability safeguards, we now have a deeper policy toolkit to deal with external and domestic shocks to the system. these tools will allow the bsp to respond to the formation of imbalances and address the build - up of system risk. first, we continue to implement a flexible exchange rate regime as our first line of defense against external shocks. such a framework allows the bsp to intervene only if volatility in the foreign exchange market is perceived to adversely affect the inflation outlook. our policy toolkit now encompasses macroprudential regulations that can be targeted against specific sources of risks, contingency measures such as liquidity - enhancing facilities, and regional firewalls that boost the flexibility and effectiveness of our actions. aside from this