A former Bangko Sentral ng Pilipinas (BSP) official cautions against aggressive easing of monetary policy due to persistent global economic risks despite relatively controlled inflation in the Philippines. While inflation remains within target, geopolitical tensions, supply chain disruptions, and volatile energy prices pose challenges for policy decisions.
MONETARY authorities must tread carefully in easing policy amid persistent local and global economic uncertainties, a former Bangko Sentral ng Pilipinas official warned.GlobalSource Partners analyst and former central bank deputy governor Diwa Guinigundo said that while inflation appeared under control, external risks such as geopolitical tensions, supply chain disruptions and volatile energy prices could complicate policy decisions.
While these figures suggest room for policy easing, Guinigundo said that inflation forecasts may not fully account for external shocks, including the potential impact of global oil prices surpassing $90 per barrel and secondary effects on transport fares, food prices and wages.
MONETARY POLICY INFLATION GLOBAL ECONOMY PHILIPPINE ECONOMY INTEREST RATES
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