BSP to do whatever it takes to rein in inflation
T THE WORLD ›› A11
ETHNIC GROUP SAYS MYANMAR AIR ATTACK KILLS 80 AT CELEBRATION
HE Bangko Sentral ng Pilipinas (BSP) on Tuesday said it is “prepared” to undertake “all necessary” monetary policy action to bring inflation within the national government’s target. The Central Bank pointed out that it “remains vigilant” in monitoring all risks to the country’s inflation and outlook. “The Bangko Sentral ng Pilipinas supports the initiatives of the National Government to boost the supply of key food commodities and address supply-side
pressures exacerbating inf lation,” said the BSP statement on October 25. “Addressing high inflation requires a whole-of-government approach to protect vulnerable sectors of the economy from the impact of high prices,” it added. The BSP noted that government measures aimed at improving local farm productivity and addressing bottlenecks in supply chains are “crucial” in “mitigating” supply-side pressures on inflation.
“The overall supply of agricultural commodities continues to be restricted by low farm productivity and high production costs, worsened by global supply disruptions, persistent animal diseases, uncertainties due to the Ukraine-Russia conflict, and tariff and non-tariff restrictions on agricultural trade,” it explained. The Central Bank said its monetary policy actions are “working in tandem” with the government’s fiscal policy and programs “to prevent inflation expectations from
becoming more entrenched.” Earlier this week, Bangko Sentral Governor Felipe M. Medalla hinted that the BSP could raise interest rates by another 100 basis points (bps) this year, depending on the interest rate hike to be implemented by the US Federal Reserve. Medalla said the Fed could raise interest rates by 75 bps in November and another 75 bps before the year ends. He said this could merit the same response See “BSP,” A2
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Wednesday, October 26, 2022 Vol. 18 No. 14
DESPITE INFLATION, 6.5% GROWTH STILL POSSIBLE n
By Jasper Emmanuel Y. Arcalas
China envoy: We offer wider market for PHL goods
@jearcalas
T
HE Philippine economy will still grow at 6.5 percent this year despite heating inflation all-year round, a local think tank said. In its latest Market Call report, First Metro Investment Corporation-University of Asia and the Pacific (FMIC-UA&P) Capital Market Research said the upcoming Christmas season would fuel economic growth through higher employment. FMIC-UA&P said it expects domestic manufacturing output to rise further in the last quarter as the national government “rachets up” spending on infrastructure and agriculture. FMIC-UA&P added that the government’s higher tax collections year-on-year has led to “lower projected” debt-to-GDP to a range of 63 percent to 64 percent this year. However, FMIC-UA&P noted that See “Inflation,” A2
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By Lito U. Gagni
C
HINA has offered a wider market for Philippine products as it crafts a policy on modernization that is inclusive for other developing countries. Chinese Ambassador to the Philippines Huang Xilian bared the proffered cooperation agreement with the country at Tuesday’s Pandesal Forum at Kamuning Bakery where he discussed the impact of the 20th China Communist Party congress that elected Chinese leader Xi Jinping to a third 5-year term last weekend. Huang said China is committed to buying Philippine fruits and, in
CHINESE Ambassador to the Philippines Huang Xilian (third from right) speaks about the new opportunities for Philippines-China relations and pursuing Chinese modernization at the Pandesal Forum held at Kamuning Bakery Cafe in Quezon City on Tuesday, October 25, 2022. Others in photo are Prof. Lucio Pitlo III, research fellow, Asia-Pacific Pathways & Progress Foundation; former Presidential Political Adviser Ronald Llamas; and Pandesal Forum host Wilson Y. Lee Flores. NONOY LACZA
See “China,” A2
BUSINESS GROUPS BACK TOTAL PHASEOUT OF POGO By Andrea E. San Juan
B
USINESS and economic groups have expressed full support for the complete phaseout of Philippine of fshore gaming operators (POGOs) citing “social and reputational costs.” “We fully support the Department of Finance’s [DOF] push to phase out all POGO operations, and urge our legislators and t he Executive Department to take all actions necessary to execute in an orderly way,” said Foundation for Economic Freedom (FEF), Makati Business Club
(MBC), and Management Association of the Philippines (MAP) in a joint statement on Tuesday. These business groups have underscored the “social and reputational costs” of government sponsorship of the POGO operations, noting that these are “globally frowned upon.” Hence, the groups added, these costs far outweigh any economic benefits. The business groups noted that crimes, like money laundering, kidnapping, briber y, prost it ut ion, hu ma n a nd drug trafficking—all associated with the gambling industr y—have an impact on the
countr y’s record of law and order hence tarnishing the countr y’s reputation. The damaged reputation could also result in the dwindling confidence in the country’s banking system. “The taint of money laundering diminishes confidence in our banking system and puts legitimate financial flows, including from [overseas Filipino workers] OFWs, at risk from sanctions of international oversight bodies,” the business groups stressed. The groups emphasized that the country’s connectivity to international banking and the
business and OFW communities who depend on it, must be protected. The business groups also recounted that for the past years, regulatory oversight has been a problem, resulting in “monitoring and taxation issues” with the Philippine Amusement and Gaming Corporation (Pagcor), the country’s licensing agency. “Conflicting mandates and the lure of corruption have rendered it and other involved government agencies incapable of effectively regulating POGOs,” the groups noted. See “POGO,” A2
PESO EXCHANGE RATES n US 58.8280 n JAPAN 0.3948 n UK 66.3756 n HK 7.4941 n CHINA 8.0998 n SINGAPORE 41.3699 n AUSTRALIA 37.0969 n EU 58.0809 n KOREA 0.0407 n SAUDI ARABIA 15.6561 Source:
BSP (25 October 2022)