THE Philippines’ central bank said on Friday (Dec 27) it will maintain its current annual inflation target of 2 to 4 per cent through to the end of 2028, saying the outlook was for inflation to stay manageable.
The target range remained an appropriate representation of the medium-term goal for price stability, given the current structure of the economy and the macroeconomic outlook, the Bangko Sentral ng Pilipinas (BSP) said.
“Prospects for aggregate demand and supply-side conditions point to a manageable inflation outlook despite upside risks,” it added.
Last week, the BSP cut last week its key interest rate by 25 basis points to 5.75 per cent, the third consecutive cut, but flagged that further easing next year might come in “baby steps” as inflation remains a concern.
“The risk of possible domestic and external shocks will warrant continued close monitoring and proactive intervention measures,” the BSP said on Friday.
The central bank said it would continue to ensure monetary policy was aligned with its primary mandate of safeguarding price stability.
Inflation has averaged 3.2 per cent for January to November, within the central bank’s 2 to 4 per cent target range for 2024. It expects annual to be between 2.3 to 3.1 per cent in December, with the full-year figure averaging 3.2 per cent. REUTERS
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