BSP cites inflation targets, investment opportunities in RP Islamic banking and finance sector

The Bangko Sentral ng Pilipinas (BSP) underscored its readiness to safeguard the National Government’s inflation target during the PH Dialogue: Economic Outlook and Opportunities in Doha, Qatar on 10 September 2023.

According to BSP Deputy Governor Francisco G. Dakila, Jr., the average inflation for 2023 is projected to settle at 5.6 percent, 3.3 percent in 2024 and 3.4 percent in 2025.

The central bank employs various tools to respond to inflation pressures. Among these are  raising the Target Reverse Repurchase (RRP) Rate (formerly referred to as the interest rate on the overnight RRP facility) by 425 basis points since May 2022 and communicating its forward guidance to the market.

The BSP also highlighted investment opportunities in the Philippine Islamic banking and finance sector, which underscores risk-sharing and prohibits the charging of interest consistent with the principles of Shari’ah.

BSP Assistant Governor Arifa A. Ala emphasized that Islamic banking and finance support financial inclusion and broaden financing options for both Muslim and non-Muslim Filipinos.

Speakers at the PH Dialogue in Doha included Philippine Ambassador to Qatar Lillibeth V. Pono, Finance Secretary Benjamin E. Diokno, Budget and Management Secretary Amenah F. Pangandaman, National Economic and Development Authority Secretary Arsenio M. Balisacan, HSBC Philippines President and Chief Executive Officer (CEO) Sandeep Uppal, and Standard Chartered Bank Philippines Interim CEO Rowena R. Kapunan.

Discussions during the PH Dialogue in Doha covered the investment prospects in the Philippines, updates on the economy, the government’s spending priorities, fiscal and infrastructure programs, and the recent reforms that further opened the economy to foreign investors.