The central bank of the Philippines (BSP) on August 8 cut its benchmark interest rate and kept the door open for further easing to buttress the flagging economy (Photo: www.philstar.com) Hanoi (VNA) – The central bank of the Philippines (BSP) on August 8 cut itsbenchmark interest rate and kept the door open for further easing to buttressthe flagging economy.
Thebank reduced the borrowing rate by a quarter-percentage point to 4.25 percentfor the second time in the year.
ThePhilippines’ inflation is now expected to average 2.6 percent this year and 2.9percent next year, the central bank said, down from its previous estimates of2.7 percent and 3.0 percent, respectively. Both forecasts are well inside its 2percent-4 percent target for both years.
Speakingwith reporters, BSP Governor Benjamin Diokno said the benign inflation outlookprovides room for further reduction in the policy rate as a pre-emptive moveagainst the risks associated with weakening global growth.
Thecountry's gross domestic product grew 5.5 percent in the second quarter from ayear earlier, the statistics agency said, missing the median forecast for 5.9percent growth.
Ona seasonally adjusted basis, the economy grew 1.4 percent, faster than thedownwardly revised 0.6 percent gain in the previous quarter.
Ata news conference the same day, Philippine Economic Planning Secretary ErnestoPernia attributed the continuing weak performance of the domestic economy tothe delayed passage of the 2019 national budget and the slowdown in governmentspending.
Headded that the country has to grow by an average of at least 6.4 percent in thesecond half of the year to reach the low end of the full-year growth target of6-7 percent in 2019.
Growthcould have risen by one percentage point more in the first and second quartersif the budget had been passed on time, Pernia said.
ThePhilippines remains one of the fastest growing economies in Asia, but risingdownside risks, including simmering US-China trade tensions, put this year'sgrowth target at risk and would likely justify further policy easing, accordingto economists.-VNA
Thebank reduced the borrowing rate by a quarter-percentage point to 4.25 percentfor the second time in the year.
ThePhilippines’ inflation is now expected to average 2.6 percent this year and 2.9percent next year, the central bank said, down from its previous estimates of2.7 percent and 3.0 percent, respectively. Both forecasts are well inside its 2percent-4 percent target for both years.
Speakingwith reporters, BSP Governor Benjamin Diokno said the benign inflation outlookprovides room for further reduction in the policy rate as a pre-emptive moveagainst the risks associated with weakening global growth.
Thecountry's gross domestic product grew 5.5 percent in the second quarter from ayear earlier, the statistics agency said, missing the median forecast for 5.9percent growth.
Ona seasonally adjusted basis, the economy grew 1.4 percent, faster than thedownwardly revised 0.6 percent gain in the previous quarter.
Ata news conference the same day, Philippine Economic Planning Secretary ErnestoPernia attributed the continuing weak performance of the domestic economy tothe delayed passage of the 2019 national budget and the slowdown in governmentspending.
Headded that the country has to grow by an average of at least 6.4 percent in thesecond half of the year to reach the low end of the full-year growth target of6-7 percent in 2019.
Growthcould have risen by one percentage point more in the first and second quartersif the budget had been passed on time, Pernia said.
ThePhilippines remains one of the fastest growing economies in Asia, but risingdownside risks, including simmering US-China trade tensions, put this year'sgrowth target at risk and would likely justify further policy easing, accordingto economists.-VNA
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