No need for economic stimulus — BSP

Bangko Sentral ng Pilipinas (Central Bank of the Philippines). Wikipedia photo

MANILA — Despite earlier forecast that the government’s seven- to eight-percent growth target would be hard to achieve this year, the Bangko Sentral ng Pilipinas (BSP) said there might be no need for an economic stimulus.

Given the current economic conditions, BSP Governor Amando M.

Tetangco Jr. said that  domestic economic expansion will continue.

“We believe the economy continues to be strong… and that the monetary situation is such that there is sufficient liquidity in the system and interest rates continue to be at historic lows,” Tetangco said.

“So based on that and considering the statement of the government that they’re going to accelerate government spending, the Monetary Board was of the view that there is no need for additional monetary stimulus at this time,” he said.

During the first quarter, the economy grew by 5.2 percent. The government, however remained firm on its seven to eight percent target for the year.

The bank’s policy actions would deeply rely on domestic conditions and current assessment, according to Tetangco.

He added that as of now, there will be no need to adjust the key rates just as the other Asian countries.

Last month, several countries have slashed down their key policy rates to boot their economic growth.