Of late, we have started to see stronger signs of second-round effects, with core inflation rising and inflation expectations trending upwards. To prevent these inflation pressures from further feeding into the price- and wage-setting behavior of economic agents, we raised our policy rates by 25 basis points on 5 June and 50 basis points on 17 July.
The implementation of the revised risk-based capital framework for banks was also deferred from end-2021 to end-2022 - The period of relief on the reporting of past due and non-performing loans of borrowers affected by the pandemic was also extended to 31 December 2021 from the original timeline of 8 March 2021 subject to reporting to the BSP.