Bloomberg News

Tetangco Says Liquidity, Fiscal Space to Buoy Philippine Economy

October 11, 2011

Oct. 12 (Bloomberg) -- The Philippines has sufficient liquidity, a stable exchange rate and a “manageable” inflation outlook along with “fiscal space” to help support economic growth, central bank Governor Amando Tetangco said today.

Bangko Sentral ng Pilipinas will consider global developments, including Indonesia’s rate cut and the slump in Philippine exports in next week’s policy meeting, Tetangco said in an email reply to questions. “In most jurisdictions, inflation seems to have become less of a pressing concern,” he said. “The weakness in advanced economies is seen to weigh more on emerging economies than previously anticipated,” he said.

While “the Philippines is not immune to what’s happening externally,” the domestic environment “will help sustain growth,” the governor said. “If the fiscal stimulus does its job, this should give the necessary push to keep our economic growth in a solid upward trajectory. For our part, the BSP has policy flexibility. We will ensure that our policy stance remains supportive of growth.”

To contact the reporter on this story: Max Estayo in Manila at mestayo@bloomberg.net

To contact the editor responsible for this story: Clarissa Batino at cbatino@bloomberg.net


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