Connect with us

Hi, what are you looking for?

Economy

No ‘drastic’ liquidity moves for now — BSP

THE CENTRAL BANK is not keen on “drastic” liquidity-infusing moves as the impact of the pandemic is better addressed by fiscal measures, Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said.

“Where we are right now is that we feel that our current monetary policy stance is still appropriate for the recovery. I don’t think there will be any drastic moves on our part to inject more liquidity into the system,” Mr. Diokno said in a Bloomberg TV interview on Wednesday, noting the impact from the measures rolled out in 2020 have yet to be fully absorbed by the financial system.

The Monetary Board maintained its key policy rate at a record low of 2% at its policy setting in March, as support for the pandemic-hit economy even as inflation surpassed the annual target range of 2-4%.

Central bank officials have assured that they will remain watchful of the inflation spike’s second-round effects such as wage and transport fare hikes.

The National Economic and Development Authority (NEDA) earlier estimated the two-week enhanced community quarantine in Metro Manila and nearby provinces could shave off around 0.8 percentage point from this year’s gross domestic product.

Mr. Diokno said the economy will likely grow by 6%-7% this year, below the official target range of 6.5%-7.5% set by economic managers.

For now, Mr. Diokno said heavier lifting should be on the fiscal side.

“I think there’s still a need for some fiscal stimulus. I think for example, we need to take care of the poor and the vulnerable who were affected by the lockdown,” he said.

Lawmakers are pushing for a third stimulus measure to support affected businesses and drive recovery. House Bill 8628 or the Bayanihan to Arise as One Act, which proposes to allocate P420 billion for a social amelioration program, wages subsidy for affected workers and the acquisition of more COVID-19 vaccines and medicine, among others.

EXTENSION
Mr. Diokno also confirmed that the BSP extended the maturity of the P540-billion loan to the National Government by three months. It was originally supposed to have been repaid in March.

National Treasurer Rosalia V. de Leon said in a Viber message that the no-interest BSP loan should be repaid by July 12.

“We are fortunate that under the revised charter of the central bank, we are really allowed to lend to the government in extraordinary times and these are extraordinary times,” Mr. Diokno said.

Finance Secretary Carlos G. Dominguez III on Tuesday said the government is looking to wind down its loans from the central bank this year or next. — Luz Wendy T. Noble with inputs from Beatrice M. Laforga

Click to comment

Leave a Reply

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

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

Latest

Economy

Loxon Philippines, Inc. (LPI), one of the country’s leading specialty engineering contractors of fully integrated building management systems for the protection of life and...

Economy

MORE than half of students in the Philippines consider temporarily dropping out of school until the coronavirus pandemic ends mainly due to difficulties in...

Economy

The Public Works department has ramped up the completion of projects such as the Sta. Monica-Lawton Bridge also known as the Kalayaan Bridge. —...

Economy

THE BUREAU of the Treasury (BTr) raised its planned borrowings from the local market to P235 billion in July, as it seeks to offer...

Economy

By Jenina P. Ibañez, Reporter MANILA is the 78th most expensive city for expatriates to live in according to Mercer’s 2021 Cost of Living...

You May Also Like

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Investing

As a traditionally rigid insurance industry becomes bogged down by antiquated processes and operations, a handful of industry leaders are seeking to shake things...

Economy

US President Joseph R. Biden, Jr., will rely on ally countries to supply the bulk of the metals needed to build electric vehicles and focus on...

Economy

THE Securities and Exchange Commission (SEC) has warned the public from investing or to stop any investment in a group named Maxxprofit Computer Trading...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.



Your information is secure and your privacy is protected. By opting in you agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!