Philippine Central Bank’s Guinigundo on Monetary Policy, Rate Cuts, Peso

The transcript discusses the monetary policy stance of the Philippines and Indonesia, focusing on inflation trends, market risks, and the potential for policy rate adjustments. It highlights the cautious approach of the Philippines' central bank in response to inflation volatility and market conditions. The discussion also covers the possibility of adjusting bank reserve ratios and the impact on domestic liquidity. Additionally, the transcript examines the factors influencing the Philippine peso's exchange rate, including foreign investments and economic fundamentals.

What is the primary reason for the Philippines' cautious approach in monetary policy?

• To increase foreign investments

• To confirm a downward trend in inflation

• To boost employment rates

• To stabilize the stock market

What is the Philippines' stance on monetary policy due to market risks?

• Hawkish

• Dovish

• Aggressive

• Neutral

What are the inflation forecasts for the Philippines in 2019 and 2020?

• 5% and 5.5%

• 4% and 4.5%

• 3.1% and 3%

• 2% and 2.5%

What condition must be met before the Philippines can reduce banks' reserve ratios?

• No impact on domestic liquidity

• Decrease in unemployment rates

• Stability in the stock market

• Increase in foreign investments

What is the current level of banks' reserve requirement in the Philippines?

• 10%

• 20%

• 15%

• 18%

What factors are contributing to the strength of the Philippine peso?

• Decrease in foreign investments

• Increase in inflation rates

• Substantial foreign exchange inflows

• Decrease in international reserves

What was the peak inflation rate in the Philippines in September 2018?

• 4.4%

• 7.8%

• 6.7%

• 5.5%