BSP Governor Benjammin Diokno said the central bank’s monetary policy response would continue to be guided by its inflation and growth outlook.

“The BSP stands ready to maintain its accommodative monetary stance for as long as necessary to support the economy’s sustained recovery to the extent that the inflation outlook would allow,” Diokno said in a statement.

Inflation surged to 4.9 percent in August, the highest since December 2018 and at the upper end of BSP’ 4.1 percent to 4.9 percent projection as food and non-alcoholic beverage costs jumped.

The BSP, however, still expects headline inflation to hit 4.1 percent this year and decelerate to 3.1 percent for 2022 to 2023.

The resurgence of COVID-19 variants and pace of vaccination are downside risks to both aggregate demand and inflation, the BSP said.

Diokno said while current accommodative settings remain appropriate, it would take time for policy measures to work their way through the economy and spur private consumption and investment.

The post BSP confident inflation will retreat to 2-4% target range for 2022-2023 first appeared on Bilyonaryo Business News.



BSP confident inflation will retreat to 2-4% target range for 2022-2023
Source: Filipino Daily Inquirer