benjamin e diokno : independence policy continuity and institutional statement by mr benjamin e diokno, governor of bangko sentral ng pilipinas ( bsp, the central bank of the philippines ), during a press conference, manila, 8 march 2019. * * * good morning. i am happy to be with you all today at the bangko sentral ng pilipinas. i would like to thank the bsp family for their warm reception on my first day at work in bsp and the monetary board for our very collegial discussions yesterday. invariably, one cannot speak about the bsp without mentioning my immediate predecessor, nestor a. espenilla jr. who spent his career spanning 38 years here. i am sure that he is and will be greatly missed for pushing an agenda centered on financial inclusion, financial learning and consumer protection. rest assured, i will be adopting this agenda with the aim of making financial services more accessible to our larger population. the bsp has fostered an environment for the ideal convergence of stable prices and high economic growth by implementing much - needed reforms during the past 20 years. this has certainly led to favorable and wide - ranging results, including the country ’ s maintenance of its investment - grade credit ratings. as of end - 2018, the country is rated bbb / positive by standard and poor ’ s, bbb / stable by fitch, and baa2 / stable by moody ’ s investors service. a strong institution i am certain that the bsp would not have been able to pursue such difficult reforms without a highly competent workforce that is led by outstanding, capable and intelligent leaders. under the bsp ’ s strategy map 2018 – 2023, i have been duly informed that the officers and staff of this institution are collectively working towards being “ recognized globally as the monetary authority and primary financial system supervisor that supports a strong economy and promotes a high quality of life for all filipinos. ” i would say that you have done this with clear results, as i am now joining a credible central bank that enjoys the trust and confidence of the market in pursuing its mandate of price stability, financial stability and efficient payments system. it is also noteworthy that the bsp is committed to promoting dynamic stakeholder engagement to constantly seek ways to improve delivery of mandates ; organizational agility amid a changing operating environment ; and organizational capability by constantly developing agile, collaborative, motivated, and skilled bsp workers. while i am still taking stock of the full breath of my

##3. results of the bsp ’ s survey of private sector economists showed their mean inflation forecast at 4. 4 percent for 2021. most economists saw the risks to the inflation outlook for 2021 as tilted to the upside due to persistent supply disruptions and rising global oil prices. nevertheless, for 2022 and 2023, economists expect inflation settling within target at 3. 5 and 3. 1 percent, respectively. liquidity in the financial system remains ample. domestic liquidity expanded by 8. 3 percent year1 / 3 bis central bankers'speeches on - year to p14. 8 trillion in november 2021, extending an uptrend since july. as i mentioned, the various liquidity - easing measures of bsp have injected some 2. 3 trillion pesos into the financial system, the equivalent of 12. 5 percent of gdp. meanwhile, outstanding loans of universal and commercial banks, net of reverse repurchase placements with the bsp, increased at a faster rate of 3. 5 percent year - on - year in october from 2. 7 percent in september. the continued recovery in bank lending activity reflects the sustained expansion in business activity amid easing quarantine restrictions, declining covid - 19 cases, and increased vaccinations. the country ’ s external sector continues to provide sufficient buffers to ward off the potential adverse effects of external headwinds. our gross international reserves, which stood at us $ 107. 7 billion as of end - november 2021, continue to provide ample cushion against unforeseen demand for foreign exchange liquidity. this is equivalent to 10. 2 months ’ worth of imports of goods and payments of services and primary income. it is also about six to nine times the country ’ s short - term external debt, based on residual and original maturity, respectively. amid the strong rebound in external demand in key trade partners, the country ’ s exports of goods increased by 16 percent in january to september 2021. meanwhile, following the gradual resumption of domestic economic activities and restocking of inventories, imports of goods grew at a much faster rate of 30. 2 percent in the same period. this resulted in a wider trade deficit of us $ 36. 6 billion and has caused the overall balance of payments ’ position to the reversal of the deficit of us $ 665 million in the first nine months of 2021, from a us $ 6. 9 billion surplus in the same period last year. the country ’ s external sector remains supported by