BSP weighs slowing economic growth in future policy rate decisions

Résumé détaillé

The Bangko Sentral ng Pilipinas (BSP) said it is carefully assessing the implications of the latest growth data for the inflation outlook but ...

MANILA – The Bangko Sentral ng Pilipinas (BSP) said it is carefully assessing the implications of the latest growth data for the inflation outlook but assured that future monetary policy decisions will take into account both inflation expectations and economic growth outlook.

"In the face of a difficult combination of elevated inflation and slowing economic growth, the Bangko Sentral ng Pilipinas remains determined to fulfill our mandate of pursuing price stability conducive to sustained and balanced growth," the BSP said in a statement late Wednesday.

Economic growth slowed to 2.1 percent in the third quarter of the year as elevated inflation continued to affect consumption.

Inflation, as of October, settled at 7.8 percent, which is above the BSP's 3 percent target.

To bring down inflation, the BSP's Monetary Board hiked rates by another 50 basis points last month.

The BSP said since monetary policy is unable to control the direct inflationary effect of recent global supply shocks, it focuses on the second-round effects of such shocks.

"In the BSP's efforts to bring inflation down, it takes important account of the weakness in aggregate demand. It is also mindful of the need to prevent the de-anchoring of inflation expectations," it said.

The central bank noted that restoring price stability and safeguarding households' purchasing power are essential to rebuilding confidence and supporting economic recovery.

"We are carefully assessing the implications of the latest growth data for the inflation outlook. Future monetary policy decisions will continue to be guided by incoming data, particularly developments in inflation, inflation expectations, and economic activity," the BSP said.

Début de l'article, extrait de Philippine News Agency. Pour lire la suite, ouvrez l'article chez le média.