##kit to support the economy, should conditions warrant. third, the decision to unwind covid - 19 policy responses must be done in a gradual, prudent and informed manner. complete risk assessment based on all available data must support the decision and timing of unwinding. likewise, appropriate communication must accompany the decision to unwind. finally, we will continue to work as one with market participants and the relevant government agencies in carrying out appropriate responses in a timely manner, in support of the national government ’ s broader efforts to address the impact of the pandemic on the economy. thank you and good day. 4 / 4 bis central bankers'speeches

to bring the rr in line with regional norms. the bsp is also committed to foreign exchange ( fx ) reforms toward a more organized fx market that supports a flexible and market - determined exchange rate. this includes further liberalizing fx rules to reduce the cost of doing business and to improve data capture for fx transactions. overall, our commitment to lowering friction costs in the banking sector will foster more efficient financial intermediation, which will be further enhanced by the availability of alternatives offered by fintech and digital innovation. towards a more internationally integrated financial sector, bsp has been supportive of the asean financial integration process and has actively cooperated and collaborated with asean central banks through responsive regulations and measures to support regional financial integration and capital market development. likewise, the bsp has recently put in place various enhancements in its arsenal of macroprudential tools. these include the recent approval to impose counter - cyclical buffers ( ccyb ) and the approval of the extension of the observation period for the basel iii liquidity coverage ratio ( lcr ) and net stable funding ratio ( nsfr ), among others. these tools allow the bsp to manage the build - up of systemic risk in the financial system by setting aside additional capital as reserves during good times and as insurance or buffers for bad times. despite all these positive developments, there are still challenges on the horizon. as international monetary fund ( imf ) chief christine lagarde aptly puts it, “ the global economy is at a delicate moment ” — as we see uncertainty as well as lack of trust and confidence by the business community as to what the global economic landscape is going to be. under such condition, markets and economies, including the philippines could possibly become more susceptible to risks. allow me to identify some of the key challenges that we need to address. first is the risk of a sharper - than - expected global economic slowdown. in its most recent world economic outlook ( weo ), the imf revised its global growth forecast for 2019 downward from 3. 7 percent last october 2018 to 3. 3 percent this april 2019. second, with global growth slowing, advanced economies have shifted from a restrictive to a 2 / 3 bis central bankers'speeches more accommodative stance of monetary policy. while this could be beneficial for emerging economies like the philippines, it could also potentially provide the impetus to a cycle of capital flow surge and sudden stop. third, we are observing the tendency in some economies to