PH government to take ‘strong immediate action’ on inflation

As markets become affected by the surge in the rate of price increases to a record high inflation rate of 6.4 percent in August 2018, the Philippine government through Bangko Sentral ng Pilipinas (BSP) affirmed its readiness to “take strong immediate action using the full range of instruments” to address threats generated by higher-than-expected inflation.

“The follow-through actions will address threats to higher inflation, such as excessive exchange rate volatility not consistent with underlying macroeconomic fundamentals in order to ensure that inflation returns to its 2 to 4 percent target over the policy horizon,” BSP Governor Nestor A. Espenilla Jr. said.

Espenilla said the central bank will re-activate tolls like the Currency Risk Protection Program (CRPP), “which will be made available to eligible corporates with foreign exchange obligations based on more liberalized rules.”

“In addition, the BSP will take all actions necessary to deal with speculative activity by market participants,” Espenilla said.