Bangko Sentral ng Pilipinas Governor Benjamin E. Diokno said that better infrastructure is key. “From the standpoint of the FSCC, one of our objectives is to make infrastructure financing viable and this is why we are focusing in particular on deepening the capital market,” said Diokno.
“Risks are brewing and we know what those risks are, we know where they are coming from, we have ways how to address them. We think we have strength in the Philippine economy,” said Ravalo. “We want to use that strength to be able to address . When we say we have buffers — we’re talking about growth, that it’s higher than the rest of the world, inflation is low … there’s no immediate macro-shock.”
Ravalo said the interventions that are being considered are: fewer but deeper benchmark tenors, indexed bonds, and tenor-based pricing. The third intervention is tenor-based pricing. “Rates that fairly represent risks for each tenor” allow more choices for investors and market players.