DBP launches special loan for coco farmers Medalla discounts negative impact of BSP key rate increases on GDP

The sustained hikes in the Bangko Sentral ng Pilipinas’ (BSP) key rates are not expected to negatively impact domestic growth this year, Bangko Sentral ng Pilipinas (BSP) Governor Felipe Medalla said on Thursday.

In a briefing, Medalla said they expect this year’s economic growth, as measured by gross domestic product (GDP), to be about 6.5 percent, at the middle of the government’s 6 percent to 7 percent assumption.

“As we point it out, one of the reasons that inflation spread(s) quickly, relatively quickly to other sectors, is that the other sectors are actually already facing very large demand. The best example is the rise in restaurant prices,” he said.

Medalla said some restaurants have queues, which is proof that amid the increase in interest and the elevated inflation rate, domestic demand remains strong.

“That’s the reason the higher policy rate, so far, is not re- ally been a major downer on growth. Demand is still quite strong, especially in some sectors,” he said.

However, Medalla said “things may be a little bit more difficult in 2024 when the pentup demand effects are weaker, whereas the slower global economic growth is more of a factor.”

The economic growth in the last quarter of 2022 slowed to 7.2 percent from the previous quarter’s 7.6 percent but full-year output averaged 7.6 percent, higher than the government’s 6.5 percent to 7.6 percent assumption.

The inflation rate decelerated to 8.6 percent last February from the previous month’s 8.7 percent, bringing the twomonth average to 8.6 percent, higher than the 2 percent to 4 percent target of the government.

Monetary authorities on Thursday reduced the central bank’s average inflation foreFMEDALLA, P10

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Development Bank of the Philippines (DBP) has launched a special credit facility focusing on coconut farmers in support of the national government’s efforts to strengthen the development of the coconut industry, one of the major segments of the local agriculture sector, a top official said.

DBP President and Chief Executive Officer Michael O. de Jesus said the Coconut Farmers and Industry Development Credit (CFID) Program aims to provide financing to support projects related to the coconut value chain focusing on capacity expansion, farm integration, and enterprise diversification to increase farm production and income of coconut farmers.

“We believe that a robust agribusiness sector is one of the keys to achieving a food-secure Philippines,” de Jesus said in a news re- lease on Thursday. “Through this new loan program, DBP aims to pave the way for coconut

The CFID complements the Department of Agriculture’s efforts to boost food production by addressing various challenges in the coconut industry ranging from low production to natural calamities and pest infestations.

De Jesus said under the program, eligible coconut farmer enterprises and coconut farmers’ cooperatives and organizations may borrow funds to finance coconut value chain