MANILA, Philippines – The Bangko Sentral ng Pilipinas (BSP) has been recognized anew as the best regulator in the Asia Pacific by one of the region’s leading consultants for financial services.
The Asian Banker has awarded the BSP as the Best Macroeconomic Regulator in Asia Pacific for the second time. The BSP first bagged the award in 2013.
The leading provider of strategic intelligence on the financial services industry believes the BSP and the progress it has made in the years under review has brought the central bank a step closer to the realization of a world-class monetary authority, and a catalyst for a globally competitive economy and financial system.
Specifically, The Asian Banker commended the BSP for achieving low and stable inflation and effectively stabilizing the domestic currency.
Latest data showed the gross domestic product (GDP) growth of the country accelerated to 6.9 percent in the first quarter from the revised 6.5 percent in the fourth quarter of last year.
The Philippines was one of Asia’s best performers in terms of economic growth, even outpacing major economies including China’s 6.7 percent, Vietnam’s 5.5 percent, Indonesia’s 4.9 percent, and Malaysia’s 4.2 percent.
On the other hand, inflation remained benign at 1.1 percent in the first four months compared with 2.3 percent in the same period last year. This is below the two to four percent target set by the central bank.
The robust domestic demand as well as the benign inflation environment has allowed the BSP’s Monetary Board to keep interest rates unchanged since September 2014.
BSP Governor Amando Tetangco Jr. said in a text message there is no need at the moment to further stimulate the economy after the US Federal Reserve affirmed its earlier posture that their next actions would be data dependent.
Tetangco said US monetary authorities now appear to be more hawkish and thus less concerned about global economic slowdown.
“This is positive for global trade, especially for its trading partners including the Philippines. This supports our current stance that there is no need at the moment for further stimulus to the economy,” he said.
Tetangco said the 6.8 to 7.8 percent GDP growth set by the Cabinet-level Development Budget Coordination Committee (DBCC) for this year is achievable.
The BSP chief acknowledged the collective effort of the staff of the central bank to ensure that monetary policy remains robust and responsive to threats of price stability while promoting sustainable growth of the Philippine economy.
Tetangco reiterated the BSP would remain watchful of unfolding developments in the Philippines and overseas to calibrate responses in a timely manner, and continue to find better ways of conducting central banking policies.
The Asian Banker Regulation and Supervision Awards Program evaluates and recognizes the achievements of central banks and banking regulators in fulfilling their varied roles of managing macroeconomic performance, in terms of maintaining inflation and price stability; systemic and prudential regulation to ensure soundness and stability of the financial system; and conduct of business regulation to engender professional conduct and ethical practices amongst financial services providers as well as fair treatment of consumers.
BSP managing director Francisco Dakila Jr. represented the BSP during The Asian Banker Awards Dinner in Hanoi, Vietnam last May 10.