Hiked interest rates part of admin’s drive – Bunye

Malacañang said yesterday the raising of interest rates by the Bangko Sentral ng Pilipinas (BSP) was part of the Arroyo administration’s overall drive to improve the country’s fiscal position.

In a statement, Press Secretary Ignacio Bunye said aside from the raising of interest rates, other moves to put the fiscal house in order include the implementation of energy saving measures.

"We need these measures to stabilize the economy and shield it from the impact of continuous oil price hikes in the world market," Bunye said.

"They go hand in hand with our campaign to improve tax collection and go after tax cheats and evaders," he said.

For the first time in nearly five years, the BSP raised its key overnight rates by 25 basis points to ward off further inflationary pressures from rising global oil prices.

Energy Secretary Rafael Lotilla said Thursday that the government is implementing a slew of energy conservation measures and is urging the private sector to follow suit.

These include the four-day work week in government offices, energy conservation subjects in elementary and high schools; media campaign through the Advertising Board and the Kapisanan ng Brodkaster ng Pilipinas; formation of energy conservation groups among the youth, reducing the consumption of electricity; reduction of vehicles on the roads and encouraging the public to use the mass transport system.

The four-day work week scheme, which Lotilla said has gained some degree of international attention, is expected to generate P144 million in savings in just two months.

He said the transport sector alone accounts for 52 percent of the country’s total fuel consumption.

He said based on studies coming from the private sector, a medium-sized firm can save anywhere from P1.5 million to P5 million a month if it implements energy conservation measures. – Paolo Romero