BANGKO SENTRAL NG PILIPINAS (BSP) SEES INFLATION TO BE SUBDUED DUE TO DEMAND LACK

The Bangko Sentral ng Pilipinas (BSP) projects the country’s inflation rate for fiscal year 2020 to be subdued and is seen between 1.75 %and 3.75 %.

This compares with its initial assessment of the average inflation rate to be in the range of 2 % to 4%.

The BSP also sees a downward adjustment of FY 2020 growth assumptions for exports and imports of goods to -4.0 percent and -5.5 percent, respectively.

This is in anticipation of the global economy’s sharp contraction as a result of the COVID-19 pandemic. For FY 2021 to 2022, growth in goods exports is expected to recover to 5 percent while growth in goods imports is projected to bounce back to 8 percent.

Meanwhile , the foreign exchange rate for FY 2020 to 2022 is seen at between PhP50.0 and  PhP54.0 against the US dollar.