Inflation is likely to pick up in the last two months of the year as it likely came down in October, Bangko Sentral ng Pilipinas (BSP) stated this.
The latest inflation is consistent with the BSP’s prevailing assessment that inflation is likely to decline in October and may begin to pick up slightly in the remaining months of 2019 as the base effect begins to dissipate.
Earlier Tuesday, the Philippine Statistics Authority (PSA) announced inflation settled at 0.8% in October, the slowest since April 2016 at 0.7%.
Inflation peaked at a nine-year high of 6.7% in September and October 2018, following higher annual increases in major commodity groups.
Still, the central bank said the Philippines is likely to meet its inflation target of 2.0 to 4.0 percent this year.
Going forward, the central bank said that it will continue to monitor the conditions to ensure that current policy levels support growth.
The BSP will continue to keep a close eye on recent economic developments here and abroad to ensure that monetary policy remains consistent with the BSP’s goal of price stability while promoting economic growth.
Last month, the BSP delivered its third rate cut this year, reducing policy rates by 25 basis points as “price pressures” eased.
As a result, the overnight borrowing rate is now at 4.00 percent, with overnight lending at 4.50 percent and overnight lending at 3.50 percent.
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