The headline inflation of the country for the second quarter of 2020 has settled at 2.3 percent and has remained within the target range of the Bangko Sentral ng Pilipinas (BSP).
The 2.3 percent rate for the second quarter of 2020 is lower than the 3 percent rate recorded in the same period last year. The slip has been attributed to the drop in global oil prices amid lower demand due to limited transportation activities worldwide.
Meanwhile, an improvement in domestic demand is being eyed due to the opening of more businesses as lockdown restrictions are eased off. It can be recalled that manufacturing activities worldwide have also been affected by the pandemic.
To address the needs of banks and other consumers, the Central Bank has cut down interest rates by 175 basis points for banks that aim to attract loans or borrowings from public and businesses.
BSP Governor Benjamin Diokno said the economy might recover by the last part of 2020 until the first quarter of 2021.
NEDA Acting Secretary Karl Chua disclosed before the SONA of President Duterte that seven out of the 10-point economic agenda of President Duterte have been “largely achieved.”
The NEDA and other economic managers have been coordinating with Congress for the passage of a recovery program that will boost assistance to displaced workers and businesses affected by the health emergency. – Report from Naomi Tiburcio
