BSP vows ‘strong monetary action’ on Sept. 27

With just a few days before its policy meeting next week, the Bangko Sentral ng Pilipinas (BSP) on Saturday reiterated its stance to take "strong" monetary actions to address the accelerating inflation.

"How much stronger do you want us to say? We will take stronger monetary policy action," BSP Deputy Governor Diwa Guinigundo said at a news forum in Quezon City.

The BSP's policy-setting Monetary Board is scheduled to meet on September 27 to decide if it will tweak policy rates anew.

Monetary authorities has so far adjusted interest rates thrice this year for a total of 100 basis points, bringing the overnight reverse repurchase rate to 4 percent.

The adjustments in interest rates were triggered by rising inflation, which clocked in at 6.4 percent in August.

Guinigundo said adjusting interests is what the central bank can do to address inflation on the demand side as this could moderate the amount of money in the system, thus less money will be in the hands of consumers eventually tempering demand pressures.

"Trabaho ng BSP na mapanatili na hindi masyadong mabilis o malakas ang paglalabas ng pera sa ating merkado ito ay magagawa lamang kung magta-tighten ang monetary policy or mag adjust ng interest rates," the BSP official said.

Asked by how many basis points the Monetary Board will adjust rates in its September 27 meeting, Guinigundo said it is still being studied.

"'Yan po ang kinakailangan pag usapan din po natin," he said. — MDM, GMA News