Philippine central bank vows easy monetary policy, Q1 GDP revised to -3.9% from -4.2%

[MANILA] The Philippines' central bank will keep its accommodative monetary policy plans for as long as needed to ensure a strong and sustainable economic recovery from the coronavirus pandemic, its governor said on Monday.

Bangko Sentral ng Pilipinas governor Benjamin Diokno also said he expects a "strong recovery" in the second quarter after a contraction in the first quarter. Policymakers will meet on Thursday to decide on key interest rates, while second-quarter economic data will be released on Tuesday.

The country's gross domestic product (GDP) shrank by 3.9 per cent in the first quarter, the Philippine Statistics Authority said on Monday, revising the figure from an initial 4.2 per cent contraction.

In July, Philippine economic managers said GDP growth this year will likely be between 6 per cent and 7 per cent, but a two-week lockdown of the capital region to contain the more infectious Delta coronavirus variant could undermine the outlook.

"Looking ahead, we see a strong growth of around 7.7 per cent in 2022 and 6.5 per cent in 2023," Mr Diokno told ANC news channel.

GDP fell by a record 9.6 per cent in 2020, owing to tight and lengthy coronavirus lockdowns that stifled consumer spending and business activities.

REUTERS