Q1 growth to influence BSP policy moves

Bangko Sentral Governor Amando Tetangco Jr. said the gross domestic product figures for the first quarter and the updated inflation forecast will be factored into the central bank’s next review of the country’s financial health.   “It would be interesting to see the growth rate in the first quarter which would be (released) in May,” Tetangco said.   His remark comes soon after First Metro Investment Corp. (FMIC) and the University of Asia & the Pacific (UA&P) forecast GDP growth of at least 5 percent.   The National Statistics Office will release the inflation numbers on May 4 while the GDP figures are due from the National Statistical Coordination Board on May 31.   “We'll have an overall view of the inflation outlook and on that basis we'll make an assessment of the stance of policy. If there is a need to change, we'll do so, but at this point in time we decided to pause,” Tetangco said.   The BSP’s policy body, the Monetary Board, will meet again on June 14.   Last February, Socioeconomic Planning Secretary Cayetano Paderanga said the National Economic and Development Authority forecast of first quarter GDP is higher than the 4.6 percent posted from January to March in 2011.   FMIC and UA&P said their growth expectation considers increased government spending, signs of export sector recovery, higher electric power consumption, and jobs growth. — ELR, GMA News