{"id":203949,"date":"2019-02-25T21:44:40","date_gmt":"2019-02-26T02:44:40","guid":{"rendered":"https:\/\/canadianinquirer.net\/v1\/?p=203949"},"modified":"2019-02-25T21:44:40","modified_gmt":"2019-02-26T02:44:40","slug":"moodys-hails-rice-tariffication-act-bsp-charter-amendment","status":"publish","type":"post","link":"https:\/\/canadianinquirer.net\/v1\/2019\/02\/25\/moodys-hails-rice-tariffication-act-bsp-charter-amendment\/","title":{"rendered":"Moody’s hails Rice Tariffication Act, BSP Charter amendment"},"content":{"rendered":"
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Economic managers pushed for rice tarrification to liberalize rice importation, ensuring adequate supply in the country and thus, prevent shortages. The law, which is expected to become effective on March 5, is seen to help prevent a repeat of last year’s inflation surge. (Pixabay Photo)<\/figcaption><\/figure>\n

MANILA<\/strong>\u00a0\u2013 Moody\u2019s Investors Service considers both the rice tarrification law and the amendment in the Bangko Sentral ng Pilipinas (BSP) Charter as “plusses” that will further strengthen the central bank\u2019s capacity.<\/p>\n

The two measures were among those signed into law by President Rodrigo R. Duterte last February 15. \u201c(These) will enhance macroeconomic and financial stability, a credit positive for the sovereign,\u201d the debt rater said in a report dated February 23, 2019.<\/p>\n

Economic managers pushed for rice tarrification to liberalize rice importation, ensuring adequate supply in the country and thus, prevent shortages. The law, which is expected to become effective on March 5, is seen to help prevent a repeat of last year’s inflation surge.<\/p>\n

Prior to this, the government used the minimum access volume (MAV) scheme.<\/p>\n

Authorities project the tarrification to reduce inflation by around 0.7 percentage points.<\/p>\n

Rice, which is the Filipino’s staple food, accounts for about 9 percent of the consumer price index (CPI). \u201cWe expect the expected increase in the volume of rice imports will diminish the price volatility of rice, helping insulate Filipino households\u2019 consumption to adverse agricultural shocks,\u201d it said.<\/p>\n

Meanwhile, the amendment of the BSP Charter expands the central bank\u2019s supervisory oversight over non-bank financial institutions (NBFIs) The report said this \u201cwill enhance financial stability given the linkages between the banking system and these entities (NBFIs).\u201d<\/p>\n

The Charter amendment also gives the BSP authority to issue its own debt paper again, which Moody\u2019s said will provide the central bank \u201canother tool to fine-tune liquidity management and improve the effectiveness of monetary policy.\u201d It also removed money supply and credit levels as basis for determining monetary policy.<\/p>\n

\u201cTogether, these measures will help supplement the BSP\u2019s strong record of maintaining monetary and financial stability and help improve liquidity management amid capital flow volatility,\u201d it added.<\/p>\n","protected":false},"excerpt":{"rendered":"

MANILA\u00a0\u2013 Moody\u2019s Investors Service considers both the rice tarrification law and the amendment in the Bangko Sentral ng Pilipinas (BSP) …<\/p>\n","protected":false},"author":44,"featured_media":175665,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19],"tags":[],"class_list":["post-203949","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","mauthors-joann-villanueva","mauthors-philippine-news-agency"],"_links":{"self":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts\/203949","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\/44"}],"replies":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/comments?post=203949"}],"version-history":[{"count":0,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts\/203949\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/media\/175665"}],"wp:attachment":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/media?parent=203949"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/categories?post=203949"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/tags?post=203949"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}