Manila: The Bangko Sentral ng Pilipinas (BSP) is undertaking improvements in its surveillance capabilities to anticipate scenarios that could impact the central bank's policy stance, according to a ranking official.

According to Philippines News Agency, BSP Monetary and Economics Sector Deputy Governor Zeno Ronald Abenoja emphasized the importance of enhancing the Central Bank's ability to monitor real-time developments and their implications. This initiative aims to provide more solid and current information for policy recommendations to the Monetary Board, as well as to conduct early warning exercises to anticipate possible influences on policy decisions.

A key part of these efforts involves the potential recalibration of the Consumer Expectations Survey (CES) and the Business Expectations Survey (BES). The CES is a quarterly survey of households in the Philippines, assessing consumer outlook on economic conditions, family finances, and income. Results from this survey are used by BSP in shaping monetary policy. The BES provides an advance indication of changes in overall business activity and selected economic indicators.

Abenoja highlighted the importance of these surveys, stating that they will remain a core part of the BSP's sentiment analysis. He mentioned ongoing reviews of the survey instruments to improve data collection without losing valuable information. This includes potentially streamlining the process and updating the content to ensure relevance.

Additionally, the central bank is considering supplementary surveys. Abenoja noted that other central banks, such as the US Federal Reserve, have conducted strategic surveys on consumer sentiment, focusing on forward-looking expectations. The BSP is contemplating similar surveys to gauge household expectations on inflation under different scenarios, which could provide insights into potential reactions and expectations in varying circumstances.