BSP’s Diokno says suspension of rice imports won’t affect inflation

The planned suspension of the rice imports to the Philippines will not have any significant impact on inflation, the Bangko Sentral ng Pilipinas (BSP) said Wednesday.

According to BSP Governor Benjamin Diokno, suspending the Rice Tariffication Law will not have a significant impact on rice prices, given the current buffer stock of the country.

"Hindi naman makaka-apekto (sa inflation), kasi marami namang mga imports na darating ngayon eh, tapos ang concern nga is harvest season, so baka lalong bumaba 'yung presyo," he told reporters in an interview in Manila City.

President Rodrigo in February signed the Rice Tariffication Law, which removed the quantitative restrictions on rice imports and imposed a 35% tariff on shipments from Southeast Asia.

Over the weekend, however, Duterte said he has ordered the suspension of rice importation, as palay prices have already dropped to eight-year-lows.

He repeated such pronouncement on Tuesday evening, but gave no details as to when the details of the implementation of the suspension.

The Department of Agriculture (DA) has since maintained that the Rice Tariffication Law will first have to be amended for this to be implemented.

"There's no way na we'll go back (to quantitative restriction) kasi batas na 'yun eh -- Rice Tariffication," said Diokno.

During its policy meeting last week, the Monetary Board of the BSP said it now expects inflation to settle at 2.4%, slower than the earlier announced outlook of 2.5%.

"On oil prices naman, sineswerte tayo, mababa naman. Ang long-term forecast on oil prices ay mababa pa nga eh, so sineswerte tayo along the way, so we'll have a nice Christmas," said Diokno. — RSJ, GMA News