BSP keeping tabs on how tax reforms translate to inflation
THE Philippine central bank will try to determine the impact of the proposed path, especially since the US Federal Reserve is also wary of how the Trump
need to discern the impact of the new - concern in the Philippines—we are the tax reform that will be approved by Congress,” Bangko Sentral ng Pilipinas ( BSP) Governor Amando
The latest statement of Federal Reserve Chair Janet Yellen weighed into the debate over spending plans and tax cuts promised by President Donald Trump, as well as potential that could bust the budget or slow - mony before the US Senate Banking
Treading carefully but not commenting on specific policies— of which there are few in any case— Yellen responded to a question with
With an aging population and rising health care costs, the budget is “already not sustain
“Some of the policies that are being discussed
However, there simply is not enough “clarity” on the policies, and the impact on the economy will depend on their “timing and composition,”
For the BSP, Tetangco said monetary authorities “will have to determine the impact of such changes keeping in mind the need to distinguish the short
In January, BSP Deputy Governor Diwa Guinigundo said the proposed tax reforms will
“There are countervailing measures such that when the economy’s potential capacity is increased because of infrastructure and spending on social more people will be able to produce and there is - ence of better supply conditions, price movement
At present, the Department of Financeproposed Comprehensive Tax Reform Program (CTRP) has been incorporated into House Bill
income tax rates as well as donor and estate taxes, while raising the excise rates for automobiles and petroleum products, and expanding the valueadded tax base but retaining exemptions enjoyed
Further reforms being considered by the Con a tax on sugar-sweetened beverages, indexing the -
reforms in the Bureaus of Internal Revenue (BIR) and of Customs (BOC), such as the adoption of a fuel marking and monitoring system to prevent but also to ensure that only high-quality petroleum products and not adulterated fuel are sold in and the mandatory link of the point-of-sale (POS) systems of establishments directly to
Fed rate hike
Tetangco said the Fed has been consistent in stating that it is poised to raise rates and reduce accommodation, but “the timing and magnitude, however, are what remain
Yellen made it clear on Tuesday that interest rate hikes are coming, and could
She presented an upbeat view of the economy, with labor market conditions
If those factors continue to improve as expected, “it probably will be appropriate
signal analysts were looking for, as many have raised the chances for a rate increase
The policy-setting Federal Open Market Committee (FOMC) raised rates in December for only the second time in a decade,
Providing his view on the latest Fed statement, an analyst said that with the US economy showing strong growth momen of FOMC voting members, including Fed Chair Yellen, are signaling that the Fed is likely to implement another rate hike dur
“With consumer spending strong, the labor market close to full employment and sustained expansion in jobs growth, the Fed needs to gradually tighten monetary policy, with IHS Markit expecting a total of three Fed rate hikes this year,” IHS Markit senior economist Rajiv
With the Trump administration needing time to develop and implement its - phasized that Yellen has signaled that the Fed’s next rate hike will likely not wait for