BSP policies, fiscal measures to support economic recovery

MANILA – The Bangko Sentral ng Pilipinas (BSP) and the country’s monetary officials continue to assure their readiness to help bolster domestic growth as economic activities remain weak and inflation subdued.

Monetary officials said inflation further slowed down to 2.3% last September from 2.4% the previous month. The figure brings to 2.5% the country’s average inflation over the last nine months, well within the government’s 2-4%  target until 2022.

0Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno, in media statement Tuesday, said “the balance of risks to inflation continues to be on the downside due largely to the impact on domestic and global economic activities of possible deeper economic disruptions caused by the pandemic.”

Diokno expressed confidence that with the help of policy measures BSP has taken since the start of the year, as well as the fiscal measures introduced through the Bayanihan 2 Act, the domestic economy has enough support to recover from the pandemic.

“Indications of gradual improvements in manufacturing and external demand as quarantine protocols are further relaxed here and abroad could also bolster sentiments going forward,” he said.

Diokno assured monetary authorities “will continue to evaluate the transmission of BSP’s policy actions to the economy along with the recently approved fiscal measures to address the economic costs of the public health crisis.”

“The BSP stands ready to deploy and mobilize all available measures in its toolkit in fulfillment of its policy mandate as it continues to assess the impact of the global health crisis on the domestic economy,” he stressed. 

Leave a Reply

Your email address will not be published. Required fields are marked *