BusinessWorld E-paper
October 14, 2022
THE BANGKO Sentral ng Pilipinas (BSP) still has room to raise borrowing costs, but it will be tough to balance growth while ensuring price stability, economists said.
“BSP is fully aware of the need to preserve price stability but it also recognizes that it
must never put the horse before the cart. Wielding its double edged sword of a policy rate
will be effective in snuffing out demand side inflation, possibly halving headline inflation, but also at the cost of decimating its own growth story,” ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said in an e-mail note.
