Government economic managers supposes the economy to experience low inflation for the rest of President Duterte’s term of President after struggling with last year’s sharpest spike in consumer prices to hit the country for a decade.
The Bangko Sentral ng Pilipinas (BSP) stressed that it will remain vigilant in guaranteeing that the inflation rate would remain within the targeted level of 3 percent, +-1 percentage point from this point on until 2022.
“The BSP remains steadfast in its commitment of maintaining price stability conducive to a balanced and sustainable economic growth,” Deputy Governor Cyd Tuaño-Amador said in a statement.
Tuaño-Amador, the central bank’s OIC pending the president’s nomination of a permanent governor further that “the BSP will continue to monitor closely price developments and ensure that the monetary policy stance remains appropriate in keeping inflation within target.”
Government inflation target is distinct in terms of the average year-on-year change in the consumer price index over each calendar year.
“The announcement of the inflation target is in line with the BSP’s commitment to transparency and accountability as well as the forward-looking approach in the conduct of monetary policy,” she stated.
Tuaño-Amador further explained, “The inflation targets for 2019–2022, approved by the national government, continues to be an appropriate quantitative representation of the medium-term goal of price stability that is optimal for the Philippines given the current structure of the economy and outlook of macroeconomic conditions over the next few years.”
She concluded as well, “improved productive capacity of the economy, fueled by higher infrastructure investments by the national government, supports achieving robust economic growth amid a low and stable inflation environment.”