fxstreet.com 16 Feb, 2021 10:30 am

No change from the BSP – UOB

No change from the BSP – UOB
Julia Goh, Senior Economist at UOB Group, and Loke Siew Ting, Economist, assess the recent decision by the central bank of the Philippines (BSP) to ke

The decision came as BSP sees inflation remaining elevated in the coming months while at the same time, acknowledging downside risks to growth prospects due to the emergence of new coronavirus variants and possible delays in mass vaccination programs.” “For growth prospects, the central bank highlighted downside risks to the Philippine economy despite recent indicators of activity and sentiment showing some improvement.Base effects, further improvement in export sector, continued policy support and the vaccination program scheduled to start on 15 Feb are key growth drivers, amid lingering downside risks from the rise of new coronavirus variants and still lethargic labour market conditions.Julia Goh, Senior Economist at UOB Group, and Loke Siew Ting, Economist, assess the recent decision by the central bank of the Philippines (BSP) to keep the monetary policy unchanged at the February meeting.

” “That being said, the central bank expects headline inflation to go back within its target range of 2.” “In sum, the overall tone of the latest monetary policy statement is deemed neutral.

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