155 0 0 4 min to read

In the midst of the Ukraine-Russia conflict, the BSP supports government fiscal actions.

MANILA, Philippines β€” The Bangko Sentral ng Pilipinas (BSP) has pledged to back the national government’s budgetary intervention to mitigate the effects of global events on the Philippine economy.

This comes as the country’s inflation is likely to accelerate as a result of global trade disruptions and rising oil costs caused by the ongoing Russia-Ukraine conflict.

The central bank stated in a statement released Friday that the ongoing violence will put higher pressure on important international commodity prices, especially oil and wheat.

According to industry figures, Dubai crude traded from USD110 to just over USD122 per barrel this week, while wheat prices in the global market soared by 60%.

The central bank also warned that the conflict between Ukraine and Russia might stifle global commerce and investment, with more volatility and lower market confidence spreading uncertainty to financial markets.

“In this context, the BSP backs the National Government’s efforts to conduct appropriate budgetary interventions to protect the economy from increasing inflation risks and maintain the economic recovery’s momentum,” it stated.

According to the BSP, social protection measures such as fuel subsidies for public transportation drivers, as well as the agriculture and fisheries industries, could assist mitigate the effects of rising gas prices, which have been growing for ten weeks.

The Department of Budget and Management (DBM) announced on Thursday that it has recently disbursed PHP3 billion in gasoline subsidies, with PHP2.5 billion going to public transportation and PHP500 million going to farmers and fisherfolk. A total of 377,443 people are eligible for the fuel subsidy.

Efforts to guarantee a steady supply of goods also help to mitigate inflationary effects.

Further loosening of limitations is also supported by the central bank in order to boost economic activity and market confidence.

“The BSP remains committed to maintaining monetary policy support in order to keep the economic recovery on track.” “At the same time, in keeping with our pricing and financial stability objectives, the BSP is ready to respond to anticipated second-round consequences emanating from elevated inflation pressures that potentially disanchor inflation expectations,” it stated.

QR Code

Save/Share this story with QR CODE


Disclaimer

This article is for informational purposes only and does not constitute endorsement of any specific technologies or methodologies and financial advice or endorsement of any specific products or services.

πŸ“© Need to get in touch?

Feel free to Email Us for comments, suggestions, reviews, or anything else.


We appreciate your reading. 😊Simple Ways To Say Thanks & Support Us:
1.) ❀️GIVE A TIP. Send a small donation thru Paypal😊❀️
Your DONATION will be used to fund and maintain NEXTGENDAY.com
Subscribers in the Philippines can make donations to mobile number 0917 906 3081, thru GCash.
3.) πŸ›’ BUY or SIGN UP to our AFFILIATE PARTNERS.
4.) πŸ‘ Give this news article a THUMBS UP, and Leave a Comment (at Least Five Words).


AFFILIATE PARTNERS
LiveGood
World Class Nutritional Supplements - Buy Highest Quality Products, Purest Most Healthy Ingredients, Direct to your Door! Up to 90% OFF.
Join LiveGood Today - A company created to satisfy the world's most demanding leaders and entrepreneurs, with the best compensation plan today.


0 0 votes
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments
0
Would love your thoughts, please comment.x
()
x