Amando Tetangco
Amando Tetangco
continued domestic exchange positive prices providing sentiment stability strengthen thus
Positive sentiment has also continued to strengthen the peso exchange rate, thus providing continued stability to domestic prices of imports.
fiscal improved investor upbeat
Improved macroeconomic conditions, particularly on the fiscal front, as well as upbeat expectations for 2006 heightened investor confidence.
affect deviation financial fiscal negative reforms tend
It will be important to show that the fiscal reforms are being continued. A deviation will tend to be negative and can adversely affect financial markets.
aggregate bank demand growth imply lending limited modest pressures sustained
In addition, modest improvements in aggregate demand and bank lending amid the sustained slowdown in liquidity growth imply limited demand-side pressures on prices.
additional among attractive benchmark bond bonds bring business capital comparable complement creation earlier effort emerging expected financial fixed foreign highly improve including income investors issues large liquid local market reduce secondary trading
The creation of large liquid benchmarks will improve the trading turnover in the secondary market as this is expected to, among others, reduce the bid-offer spreads on bond prices. Participants will be able to get in or out of the benchmark issues more easily, making trading in Philippine bonds comparable to those in other emerging markets. This will be highly attractive to foreign investors in the market and bring additional business opportunities to the local financial community. This effort will complement earlier initiatives in capital market development, including the creation of the Fixed Income Exchange.
credits fiscal growth improved lower mainly net public result sector
The deceleration in liquidity growth may be traced mainly to lower net credits to the public sector as a result of the improved fiscal performance.