BSP says RP economy remains stable despite global crisis
Manila (17 June) -- The Bangko Sentral ng Pilipinas (BSP) on Tuesday said that the country's economy remains stable inspite of the current global financial turmoil.
"Kung ating natatandaan sa mga nagdaang araw, ang ating ekonomiya ay nananatiling matatag inspite of global crisis (If we can recall in the past days, our economy remains stable inspite of global crisis)," BSP Deputy Governor Diwa Guinigundo stressed in a radio interview Tuesday morning.
This, as the BSP has announced that it will continue to ease policy stance as inflation outlook remains favorable despite low growth in the local economy.
"Yung mga remittances na pinapadala ng ating mga OFWs ay tumaas at kumita tayo ng US$ 1.4M (Remittances sent by our overseas Filipino workers went up and the country earned US$ 1.4 million)," Guinigundo further said.
He noted that the BSP's primary mandate is price stability in line with its inflation targeting framework.
Inflation which is the rate of price increases in the country continues to decelerate and stood at 3.3 percent in May 2009, following its "peak" at 12.5 percent in August last year.
With the deceleration of inflation, the BSP decided to cut its policy rates starting in December 2008 with the policy rates at 175 basis points as of May 2009, bringing its overnight borrowing rate at 4.25 percent, the lowest since May 15, 1992 and the overnight lending rate at 6.25 percent. (PIA) [top]