BSP underscores commitment to price stability at economic briefing in Washington, D.C.

Bangko Sentral ng Pilipinas (BSP) Governor Felipe M. Medalla underscored the central bank’s commitment to bring the country’s inflation back to a target-consistent path during the Philippine Economic Briefing (PEB) in Washington, D.C. on 12 April 2023.

The Governor cited the slowdown in inflation from 8.6 percent in February to 7.6 percent in March this year. “The BSP stands ready to use all of the tools at its disposal to manage inflation toward the government’s target of 2.0 to 4.0 percent.”

The Governor added that “the economy will be supported by price stability, financial stability, and a safe, secure, and efficient payments and settlements system.”

World Bank (WB) Country Director Ndiamé Diop cited the quick and aggressive actions of the BSP in handling inflation. “This agility and responsiveness of fiscal policy, monetary policy, and the exchange rate policy are behind the formidable resilience of growth in the Philippines,” Diop said.

Meanwhile, International Monetary Fund (IMF) Deputy Director Sanjaya Panth said: “We do think the Philippine banking system remains strong. It has limited exposure to troubled financial institutions and has strong capital and liquidity buffers.”

The BSP Governor joined the economic team composed of Finance Secretary and Monetary Board Member Benjamin E. Diokno, Budget Secretary Amenah F. Pangandaman, and Socioeconomic Planning Secretary Arsenio M. Balisacan in engaging with more than 150 participants from the US business and financial communities during the PEB.

Secretary Diokno said that the Philippine government is implementing a medium-term fiscal framework to support development goals: “[This] serves as a compass to steer the economy closely along the path of fiscal sustainability and economic growth.” The medium-term fiscal framework aims to reduce the debt-to-GDP and deficit-to-GDP ratios and sustain high infrastructure spending.

The PEB was also attended by Philippine Ambassador to the United States Jose Manuel G. Romualdez, Foreign Affairs Secretary Enrique A. Manalo, Information and Communications Technology Secretary Ivan John E. Uy, Trade and Industry Undersecretary Ceferino S. Rodolfo, Government Service Insurance System President and General Manager Jose Arnulfo A. Veloso, and Social Security System President Rolando L. Macasaet.

Other speakers in the briefing were HSBC Co-Head of the Institutional Client Group and Global Head of Public Sector Banking Michael Ellam, Global Head of Standard Chartered Bank’s Public Sector and Development Organisations Karby Leggett, and Macquarie Asset Management Managing Director Michael Rodriguez.

Held on the sidelines of the IMF-WB 2023 Spring Meetings, the PEB in Washington, D.C. updated US-based business and financial communities on the Philippines’ economic performance, investment opportunities, and the administration’s socioeconomic agenda.