The limits and responsibilities of flexible inflation targeting - BusinessWorld Online

The limits and responsibilities of flexible inflation targeting - BusinessWorld Online

Last Monday, this paper bannered the now-familiar refrain: sluggish growth and benign inflation give the Bangko Sentral ng Pilipinas (BSP) ample room to cut rates again. All 16 analysts surveyed expect another 25-basis-point reduction, bringing the policy rate to 4.25%, the lowest in more than three years. The argument appears neat and compelling. Growth has disappointed. GDP averaged only 3.9% and 3% in the third and fourth quarters. Full-year …