Economy

Philippine c.bank lifts 2018 inflation forecast; keeps 2017, 2019 views

Despite the faster rise in consumer prices, Bangko Sentral ng Pilipinas Governor Nestor Espenilla Jr says monetary authorities believe the future inflation path will stay within target. Such confidence allowed the policy-making Monetary Board of the Bangko Sentral ng Pilipinas to keep the policy-rate structure unchanged since so-called operational adjustments were made in June previous year.

Inflation projections based on a survey of the private sector remained at 3.2 percent for this year; however, forecast for 2018 was raised to 3.4 percent from 3.2 percent.

The BSP's overnight reverse repurchase (RRP) facility is still at three percent, and the rates on the overnight lending and deposit facilities are the same.

This had the impact of keeping the rate at which the BSP borrows from banks unchanged at 3 percent.

Such was their confidence that forecast inflation this year was kept steady at 3.2 percent, although the forecast inflation next year was recast higher to 3.4 percent, from 3.2 percent originally.

The BSP sees the inflation outlook as manageable even as it continues to acknowledge that risks are skewed to the upside.

The inflation rate climbed higher in October at 3.5 percent from 3.4 percent in September, it is the highest monthly rate for the year.

This brought the average inflation to 3.2% in the 1st 10 months of 2017. In the meantime, the proposed tax reform program "may exert potential transitory pressures on prices, although various social safety nets and the resulting improvement in output and productivity are also expected to temper the impact on inflation over the medium term".

According to Espenilla, Philippine monetary authorities will continue to take into account monetary actions but do not have to move in sync with other central banks such as the US Federal Reserve.

"We have different economic and business cycles, and adjustments in monetary policy by the US Fed does not necessarily warrant a corresponding response of monetary policy from the BSP", Guinigundo said.

"If you look at our inflation forecast, there is very little reason for us to adjust monetary settings at this point in time", Guinigundo also said.



Like this

loading...
loading...

Latest


09 November 2017
Keybank National Association OH Buys 32287 Shares of Comerica Incorporated (CMA)
The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink . This buyback authorization allows the financial services provider to purchase shares of its stock through open market purchases.

09 November 2017
Pakistani soldier martyred, 5 terrorists killed in Khyber Agency
The attack which was repulsed by the army also led to martyrdom of a soldier identified as Muhammad Ilyas. Major General Asif Ghafoor affirmed that sacrifices like DIG Hamid shall not go waste.

09 November 2017
North Atlantic Treaty Organisation to increase mission in Afghanistan by 3000 troops
President Donald Trump also has demanded NATO allies commit troop increases in Afghanistan that are "in line" with the U.S. However, there are indications that allies in Europe are struggling to meet the US halfway.

09 November 2017
AT&T says timing of Time Warner deal closing now uncertain
AT&T could be forced to sell off CNN or DirecTV if the Justice Department is to permit its purchase of Time Warner . It would also mean that AT&T could now harness Time Warner's entertainment expertise.

09 November 2017
KeyCorp Weighs in on The Middleby Corporation's FY2017 Earnings (MIDD)
Alliancebernstein Lp invested 0.06% of its portfolio in Middleby Corp (NASDAQ:MIDD). 61,306 are held by Nordea Invest Mngmt Ab. For shareholders, given the total diluted outstanding shares of 57.3 million, this means overall earnings per share of 1.35.

09 November 2017
Real Madrid 'nearing Kepa Arrizabalaga deal'
Arsenal , meanwhile, may yet decide to match Madrid's offer in January after being impressed by the Spaniard's form at Bilbao. But his next move could have a knock-on effect for a number of other English clubs.

09 November 2017
SPDR MSCI ACWI IMI ETF (ACIM) Declines 1.11% for Nov 9
A certain stock may be considered to be on an uptrend if trading above a moving average and the average is sloping upward. Active traders have a wide variety of technical indicators at their disposal for completing technical stock analysis.

09 November 2017
BNM keeps OPR at 3%, hints at rate hike
BNM has kept interest rates unchanged since July 2016 when it unexpectedly cut the interest rate by 25 basis points. For 2017, headline inflation is forecast to be at the upper end of the forecast range.

09 November 2017
Windows Defender Advanced Threat Protection comes to iOS, macOS, Android and Linux
As attackers continue to move quickly, the security industry must work together to provide integrated experiences and technology. Windows Defender ATP has the ability to track individual device event history "for up to six months", according to Microsoft.

09 November 2017
Uber partners with NASA for flying taxi initiative
Phase Three takes place in 2018 over moderately population ground, and phase four is planned to begin over urban areas in 2019. Uber will not build the vehicles itself and is working with developers to install landing pads atop skyscrapers.