Philippines eco managers woo foreign investors

MANILA, Philippines — Economic managers continue to woo foreign investors to participate in the country’s massive infrastructure buildup, saying monetary and non-monetary measures are being implemented to address elevated inflation.

Bangko Sentral ng Pilipinas Deputy Governor Diwa Guinigundo recently discussed the country’s sound macroeconomic fundamentals, infrastructure investment, and resiliency to global uncertainty in a series of roundtable meetings with foreign investors during the annual meeting of the International Monetary Fund and World Bank in Bali, Indonesia.

“The BSP will continue to sustain its vigilance with a strong tightening bias, while maintaining a data-dependent approach,” he told investors.

Guinigundo said numerous measures have been put in place to address supply-side factors such as the price of food, which the BSP and the national government agree are the main factors behind the rise in inflation.

Inflation averaged five percent in the first nine months of the year after leaping to a near-decade high of 6.7 percent in September from 6.4 percent in August due to higher oil, more expensive rice and agricultural commodities after the onslaught of Typhoon Ompong, and the impact of the tax reform law.

The BSP’s Monetary Board has so far raised interest rates by 150 basis points in four consecutive rate-setting meetings since May to curb rising inflationary pressures.

“The September data showed that core inflation had declined slightly, demonstrating that the BSPs decisive monetary policy decisions combined with a range of non-monetary actions were starting to have their desired effect,” Guinigundo said.