BSP: Inflation remains key to policy rates decision
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ACTAN, Cebu—The rising costs of goods and services are main considerations that could prompt the Monetary Board to maintain key policy rates in its meeting in December, according to the Bangko Sentral ng Pilipinas (BSP). BSP Governor Eli M. Remolona Jr. told reporters here, however, that the central bank still expects inflation to be within their expectations. The overall target for inflation is 2 to 4 percent. In the last meeting of the Monetary Board, the BSP said its riskadjusted inflation forecast for 2024 eased to 3.1 percent from 3.3 percent
in the previous meeting. However, the risk-adjusted forecasts have increased slightly to 3.3 percent for 2025 and 3.7 percent for 2026. “Inflation pressures may cause us maybe to pause a bit but weak growth may cause us to cut,” Remolona told reporters on the sidelines of the two-day 2024 BSP-International Monetary Fund Systemic Risk Dialogue here. BSP Assistant Governor for the Monetary Policy Sub-Sector Zeno Ronald R. Abenoja also told reporters that the next inflation print will reflect some of the typhoon impact in October. As for the impact of typhoons
in November, Abenoja said, some of these could be reflected in the December inflation print. As of November 20, the National Disaster Risk Reduction and Management Council (NDRRMC) estimated that the total agriculture damage caused by Tropical Cyclones Nika, Ofel, and Pepito reached P8.64 billion. This is composed of P5.72 million worth of damage in Central Luzon or the rice granary of the Philippines and P2.92 million in Region 1 or the Ilocos region. However, Abenoja told reporters that the Department of Agriculture estimated that about 70 percent of
the rice planted for the season had been harvested when the typhoons made landfall in these regions. He said the BSP will work closely with the Interagency Committee on Inflation and Monetary Outlook (IAC-IMO). “So we will check, we will coordinate with the IAC-IMO, yung Interagency Committee on Inflation and Monetary Outlook to have a broader sense noong impact ng typhoons sa different commodities as well as yung mga non-food din na pwedeng adjustments this November, December,” Abenoja said.
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BOP ON STEEPEST 9-MO DIP, WITH $724-M GAP www.businessmirror.com.ph
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Thursday, November 21, 2024 Vol. 20 No. 43
P25.00 nationwide | 2 sections 36 pages | 7 days a week
By Cai U. Ordinario
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@caiordinario
ACTAN, Cebu—The country’s balance of payments (BOP) swung to a deficit in October and posted its steepest decline in nine months, according to the latest data from the Bangko Sentral ng Pilipinas (BSP). Based on the latest data, the BOP posted a $724-million deficit in October 2024 from a $1.5-billion BOP surplus recorded in October 2023. This is the steepest decline since the deficit of $740 million in January. However, BSP Governor Eli M. Remolona Jr. said the data also showed that the country remains insulated from a tariff war given the dependence of the Philippines on the services sector. “Our balance of payments show that our service exports are just as large as our goods exports. In our service exports we have BPO revenues, business processing revenue and then we have remittances from abroad,” See “BOP,” A2
TYPHOONS TAKE A TOLL ON TABLES Vegetable vendors at the Las Piñas Public Market report that prices of vegetables have surged by nearly 50 percent, particularly those sourced from areas hit by recent typhoons. Meanwhile, fish prices have also risen, albeit more modestly, thanks to the availability of buffer stocks of frozen fish. With six typhoons hitting the Philippines in November, the soaring cost of staples like veggies and fish is making dinner tables harder to fill. NONIE REYES
STUDY: CAREER GROWTH TOPS GEN Z WORKPLACE PRIORITIES By Bless Aubrey Ogerio
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W Y NET H Ac le, 21, thought leaving college and working at a business process outsourcing (BPO) company would fast-track her career growth. However, just months into the job as a customer service representative, she resigned, frustrated with the workplace’s “rigid environment” and “lack of opportunities for personal development.” "You can really say there’s favoritism when it comes to team
managers that get prioritized for requests and incentives, even though they lack knowledge of the tools and workflow,” she said. “Also, the salary wasn’t enough to support a family, if you had one.” Her experience reflects a growing trend among Filipino Generation Z workers who are focused on career advancement and skill development. A recent Ateneo de Manila University study revealed how this generation, born between See “Study,” A2
Arangkada PHL bares new proposals for air transport By Andrea E. San Juan @andreasanjuan
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HE Arangkada Philippines Project, the advocacy arm of the Joint Foreign Chambers (JFC), has unveiled its recommendations for government to address the “structural barriers” that limit Philippine air transport efficiency and competitiveness. Among the recommendations cited by Arangkada is the need to create a Philippine Airports Authority to take over airport operations and development, allowing the Civil Aviation Authority of the Philippines (CAAP) to focus solely on regulatory oversight, enhancing both safety and efficiency. Arangkada’s policy brief explained
that the proposed reform aims to transfer the functions of CA AP to a new entity (organizational de-linking) outside of CA AP. “This entity will be responsible for the development and commercial functions of all CA AP airports,” the policy document noted. Arangkada pointed out that “evidence reveals that organizational delinking provides greater f lexibility to the regulator to focus on its core function.” Pending bills in the 19th Congress on de-linking the CA AP functions include House Bill 02234 and Senate Bill 1073. See “Arangkada,” A2
PESO exchange rates n US 58.6800 n japan 0.3794 n UK 74.4238 n HK 7.5394 n CHINA 8.1055 n singapore 43.8794 n australia 38.3239 n EU 62.1832 n KOREA 0.0421 n SAUDI arabia 15.6314 Source: BSP (November 20, 2024)