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October 01, 2023

Inflation challenges BSP’s credibility, analysts warn

After 17 consecutive months of inflation exceeding its target, concerns are emerging about the Bangko Sentral ng Pilipinas (BSP) potentially missing its inflation goals and facing credibility issues.

This comes as inflation remains above the BSP’s defined target range of two to four percent, posing challenges for the central bank’s mandate to maintain low and stable consumer prices.

The Bank of the Philippine Islands (BPI) has cautioned that prolonged high inflation could impact the BSP’s credibility as an inflation-targeting central bank, potentially limiting its ability to control inflation.

The BSP is mandated to maintain a “low and stable” consumer price index (CPI).

However, BSP officials remain confident in their inflation forecasts and expect inflation to return within the target range in the coming quarters.


BSP disqualifies unregistered money service business

The Bangko Sentral ng Pilipinas (BSP) has disqualified Riyben Foreign Exchange for operating an unregistered money service business, part of BSP’s ongoing efforts to curb unauthorized MSBs, following similar actions taken against six other firms earlier this year.

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