THE World Bank said on Thursday that the feud between President Ferdinand R. Marcos, Jr. and Vice-President Sara Z. Duterte-Carpio will not have an immediate effect on the economy.
“While the political tensions have recently increased, no major influence on the economy is expected at this stage,” the World Bank said in its Philippine Monthly Economic Developments for November, published on Dec. 4.
As the midterm elections loom and both sides exchange inflammatory rhetoric, two separate impeachment complaints have been filed against Ms. Duterte, citing betrayal of public trust, bribery, and plunder, arising from an ongoing probe into the use of confidential funds at the Office of the Vice President and at her former cabinet post, the Department of Education.
GlobalSource country analyst Diwa C. Guinigundo said in a commentary that “outside politics, all these volatile developments could certainly lead to some market backlash.”
At a recent Cabinet meeting, National Economic and Development Authority (NEDA) Secretary Arsenio M. Balisacan said rising political tensions will have minimal impact on the economy, adding that government operations are “business as usual.”
The World Bank also noted that “short-term exchange rate fluctuations are not seen likely to influence monetary policy settings.”
The bank pointed out that Bangko Sentral ng Pilipinas (BSP) Governor Eli M. Remolona, Jr. had “indicated the possibility of further peso depreciation, noting that only significant and sustained swings in the exchange rate would warrant consideration by monetary policymakers,” whether to continue or pause the BSP’s easing cycle.
The Monetary Board could deliver another rate cut either at its December policy review or the meeting after, Mr. Remolona has said. — Aubrey Rose A. Inosante
