BSP to maintain policy stance to support economic recovery

As the country faces economic risks from COVID Delta variant restrictions, Bangko Sentral ng Pilipinas (BSP) will maintain its accommodative stance for as long as necessary, to sustain economic recovery and support the National Government’s (NG) “whole-of-government approach” towards a stronger post-COVID economy.

During the Manila Times 2021 Mid-Year Economic Report held recently, Governor Benjamin E. Diokno reminded attendees that despite signs of gradual economic recovery, risks to growth still loom from restrictions due to the spread of the COVID Delta variant.

“The Philippines has sustained its position compared with rating peers because of the strengthening of its fiscal metrics ahead of the pandemic shock. Nevertheless, the country’s road to recovery will not be easy. We will continue to monitor recent developments, here and abroad, and assess their impact on the inflation outlook, financial stability and growth,” the Governor said.

He added that the BSP is resolute to staying the course amid the COVID-19 pandemic by maintaining price stability, bolstering the financial sector, strengthening resilience against external shocks, and supporting the National Government’s whole-of-government approach in addressing the current crisis and ensuring stronger recovery post-COVID.

The BSP Governor underscored that sustained targeted fiscal initiatives and monetary policy support for domestic demand would help boost market confidence and economic recovery to gain more traction. The key to a sustained economic rebound is the acceleration of the government’s vaccination program.

“Looking ahead, the BSP is committed to support the economy for as long as needed to ensure its strong and sustainable recovery. The BSP will also remain vigilant against any emerging risks to the outlook for inflation and growth and will adjust its policy settings as needed to safeguard its price and financial stability objectives,” Governor Diokno said.