MANILA, Philippines—The record amount of liquidity injected by the Bangko Sentral ng Pilipinas (BSP) into the local economy in response to the pandemic has neither caused the current spike in inflation nor instability in the financial system, the BSP said on Thursday (Feb. 18).
At an online press briefing, BSP Governor Bejamin Diokno said the agency has so far carefully striven to preserve a balance between providing non-inflationary monetary policy support to the economy and ensuring the continued soundness of the banking system.
“At this juncture, the BSP believes that we are not experiencing a trade-off between accommodative monetary policy and financial stability,” he said.
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Keep on reading: Diokno says BSP able to balance capping inflation, promoting growth