THE BANGKO SENTRAL ng Pilipinas (BSP) should continue tightening monetary policy until 2023 to anchor inflation expectations and support the peso, an International Monetary Fund (IMF) official said.
“The BSP has been prompt in tightening, a move that we support. However, if inflation pressures remain high, there will be more work to do,” IMFment Krishna Srinivasan said in a recorded message during the BusinessWorld Economic Forum Forecast 2023 at the Grand Hyatt Manila in Taguig City on Tuesday.
IMF forecasts 6.5% gross domestic product growth for the Philippines this year, matching the lower end of the government’s 6.5-7.5% goal. It expects growth to slow to 5% in 2023, well below the 6.5-8% target. “However, if market conditions become disorderly, the BSP might want to consider foreign exchange intervention to reduce excessive volatility,” he added.Meanwhile, the IMF executive board said the Philippine outlook for 2023 is more challenging amid a more uncertain global environment.
While the current policy stance remains accommodative, the IMF executive board said the BSP “should aim at bringing the policy rate close to the neutral real rate to securely bring inflation within the target range.” The BSP should closely monitor risks to financial stability amid rising interest rates and higher risks to growth, it said.
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
BSP, Philippine Payments Management launch Bills Pay PHThe Bangko Sentral ng Pilipinas (BSP) and the Philippine Payments Management Inc. (PPMI) on Tuesday launched “Bills Pay PH,” which allows clients of select financial institutions to make digital payments to onboarded billers.
Read more »
BSP’s move to tweak card deal ‘legally infirm’–DOJ - BusinessMirrorTHE Department of Justice (DOJ) has advised the Bangko Sentral ng Pilipinas (BSP) Governor Felipe M. Medalla that proposed amendments to its memorandum of agreement (MOA) with the Philippine Statistics Authority and its contract with AllCard Inc. for the personalization of the Philippine Identification (PhilID) card are “legally infirm.” In a 5-page legal opinion made
Read more »
Tight CA schedule might result to automatic bypass of Cabinet execs, says MarcoletaSAGIP Party-list Rep. Rodante Marcoleta thinks that a Cabinet official of the Marcos administration might get bypassed by the Commission on Appointments (CA) due to lack of time.
Read more »
Musk signals Twitter going to 'war' with AppleTWITTER owner Elon Musk on Monday opened fire against Apple over its tight control of what is allowed on the App Store, saying the iPhone maker has threatened to oust his recently acquired social media platform. Read more:
Read more »
Musk signals Twitter going to 'war' with AppleTWITTER owner Elon Musk on Monday opened fire against Apple over its tight control of what is allowed on the App Store, saying the iPhone maker has threatened to oust his recently...
Read more »
RCEP ratification seen making progress after show of support from Marcos, Cabinet - BusinessWorld OnlineTHE DEPARTMENT of Trade and Industry said the ratification process for the Regional Comprehensive Economic Partnership (RCEP) is moving forward after it received the backing of President Ferdinand R. Marcos, Jr. and the Cabinet.
Read more »