{"id":167428,"date":"2018-06-20T03:48:50","date_gmt":"2018-06-20T07:48:50","guid":{"rendered":"https:\/\/canadianinquirer.net\/v1\/?p=167428"},"modified":"2018-06-20T03:48:50","modified_gmt":"2018-06-20T07:48:50","slug":"bsp-assures-ph-financial-stability-amid-local-global-risks","status":"publish","type":"post","link":"https:\/\/canadianinquirer.net\/v1\/2018\/06\/20\/bsp-assures-ph-financial-stability-amid-local-global-risks\/","title":{"rendered":"BSP assures PH financial stability amid local, global risks"},"content":{"rendered":"
\"Bangko<\/a>
FILE: Espenilla noted that th 4.1 percent inflation rate in the first five months of the year, which is a little more than the 2-percent to 4-percent target range of the government, is mainly driven by significantly higher world pump prices, disruptions in food supplly and higher excise taxes (Photo By Bangko Sentral ng Pilipinas, CC BY-SA 4.0<\/a>)<\/figcaption><\/figure>\n

MANILA<\/strong>\u00a0— Bangko Sentral ng Pilipinas (BSP) Governor Nestor Espenilla Jr. has assured Japanese investors that the Philippines remains financially stable amid risks in domestic and global markets.<\/p>\n

In his presentation during the Philippine Economic Briefing in Tokyo on Tuesday, Espenilla said the BSP stands watchful and vigilant of developments in the local market, particularly the increasing price pressures and the uncertainties in the external front, such as political and policy uncertainties.<\/p>\n

Espenilla noted that the 4.1-percent inflation rate in the first five months of the year, which is a little more than the 2-percent to 4-percent target range of the government, is mainly driven by significantly higher world pump prices, disruptions in food supply, and higher excise taxes.<\/p>\n

However, he also mentioned that such price pressures are expected to ease in the coming months.<\/p>\n

He pointed out that the central bank stands ready to launch timely policy adjustments to maintain a favorable inflation environment.<\/p>\n

Last May 10, the Monetary Board raised policy interest rates by 25 basis points \u201cto temper any build-up in inflation expectations and help arrest potential second-round effects.\u201d<\/p>\n

On Wednesday, the Monetary Board will again conduct its policy meeting.<\/p>\n

\u201cWe stand ready to adjust further as may be necessary to keep inflation expectations well-anchored,\u201d Espenilla said.<\/p>\n

He also mentioned that the country\u2019s balance of payments (BOP) remains healthy, backed by strong structural foreign exchange inflows from business process outsourcing revenues and overseas Filipinos\u2019 remittances.<\/p>\n

Although it revised upward its BOP outlook at end-2018 to USD1.5 billion from its initial projection of USD1 billion, the central bank chief said the country\u2019s external payment position is still \u201cvery manageable\u201d and the BSP has built \u201csufficient liquidity buffers against global headwinds.\u201d<\/p>\n

Meanwhile, Espenilla cited external risks and challenges that the BSP is closely monitoring, so as to develop and deploy macroprudential measures.<\/p>\n

These risks include political and policy uncertainties, threats of protectionist policies, uncertainty over the pace of the United States Federal Reserve System policy normalization, and spillovers from the Chinese economy.<\/p>\n

\u201cTo address these concerns, we have built up sufficient buffers in our external position and have a range of monetary and prudential policy tools to mitigate the impact of external shocks,\u201d the BSP governor said.<\/p>\n

On the other hand, he said, to counter the threat of protectionist policies and geopolitical risks, \u201cthe Philippines has been building relationships with other countries,\u201d diversifying exports markets and finding additional sources of foreign direct investments.<\/p>\n

\u201cWe are prepared to deal with risks emanating both from external and domestic sources that could potentially derail our path. Rest assured, the BSP stands watchful and vigilant, ready to act and implement financial sector reform opportunities for the country,\u201d Espenilla said.<\/p>\n","protected":false},"excerpt":{"rendered":"

MANILA\u00a0— Bangko Sentral ng Pilipinas (BSP) Governor Nestor Espenilla Jr. has assured Japanese investors that the Philippines remains financially stable …<\/p>\n","protected":false},"author":33,"featured_media":111421,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19],"tags":[1216,18851,52035],"class_list":["post-167428","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-bangko-sentral-ng-pilipinas","tag-nestor-espenilla-jr","tag-philippine-economic-briefing","mauthors-kris-crismundo","mauthors-philippine-news-agency"],"_links":{"self":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts\/167428","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/users\/33"}],"replies":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/comments?post=167428"}],"version-history":[{"count":0,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts\/167428\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/media\/111421"}],"wp:attachment":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/media?parent=167428"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/categories?post=167428"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/tags?post=167428"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}