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BusinessWorld
May 10, 2021 | 12:33 am
Reporter
THE CENTRAL BANK is widely expected to keep policy unchanged when it announces its decision this week, amid uncertainty over the pandemic and its impact on economic recovery, a
BusinessWorld poll of analysts showed.
A
BusinessWorld poll held last week showed 15 out of 17 analysts are of the view that the Bangko Sentral ng Pilipinas (BSP) will maintain its overnight reverse repurchase rate or the key policy rate at a record low of 2%.
Analysts said the scope for interest rate adjustment is limited as inflation continued to exceed the annual target and supply issues persisted.
“The onus is then on fiscal policy to do most of the heavy lifting to support the economy. More fiscal stimulus is expected when the Bayanihan III bill is eventually passed by Congress,” Mitsubishi UFJ Group Global Research analyst Sophia Ng said.
BusinessWorld
May 7, 2021 | 12:33 am
PHILIPPINE STAR/ MICHAEL VARCAS
THE PHILIPPINE economy likely remained in a recession in the first quarter, as domestic consumption continued to be sluggish amid the prolonged health crisis.
ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said in a note on Thursday that first-quarter gross domestic product (GDP) may have contracted by 3.5%, much faster than the 0.7% slump recorded in the same period last year.
“Domestic consumption remains one of the key sectors of the economy (roughly 70% of total GDP) and we expect this sector to have been challenged at the start of the year. High levels of both unemployment and underemployment translate to depressed consumption all the more compounded as inflation rose to 4.5% in the period,” Mr. Mapa said.
BusinessWorld
May 6, 2021 | 12:34 am
The consumer price index rose 4.5% year on year in April. PHILIPPINE STAR/ MICHAEL VARCAS
INFLATION remained stable in April, while core inflation eased to a five-month low, leading economists to expect the central bank to keep rates on hold at next week’s policy-setting meeting.
Preliminary data from the Philippine Statistics Authority released on Wednesday showed the consumer price index rose by 4.5% year on year last month, unchanged from March but faster than 2.2% in April 2020. This as price increases for food staples such as rice and vegetables slowed, helping offset a spike in transportation costs caused by higher oil prices.