Economists expect BSP to maintain accommodative stance

Economists expect the Bangko Sentral ng Pilipinas (BSP) to maintain an accommodative monetary stance despite July's inflation deceleration.

The BSP aims to counter potential price hikes due to typhoons and the enhanced community quarantine (ECQ).

Food inflation is expected to rise, impacting overall CPI.

Metro Manila will be under ECQ from Aug. 6-19, likely slowing third-quarter economic growth.

BSP Governor Benjamin Diokno emphasizes guarding against pandemic-induced risks to keep inflation within target band.

Diokno notes international commodity price increases and new virus variants as key challenges.