THE PHILIPPINES’ monetary policy may need to be calibrated to integrate increasingly drastic supply shocks, the International Monetary Fund (IMF) said.
“Looking ahead, monetary policy may need to adjust to more frequent and severe supply-side shocks,” the IMF said in its latest Staff Report for the 2024 Article IV Consultation.
“Inflation dynamics in the Philippines have been characterized by a stronger influence of supply factors over demand factors in recent years, in part reflecting the Philippines’ high reliance on imports of fuel and food, limited use of price controls, and exposure to adverse climate events.”
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