MANILA — The Philippines’ central bank projects that inflation will soon return to its 2% to 4% target, with balance of risks to the outlook already shifting to the downside, its governor said on Tuesday.
“We are relieved that monetary policy has evidently helped to tame inflation,” Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona told a senate hearing.
While upside risks remain, including from higher transport, electricity and non-rice food items, inflation expectations are well-anchored, he said.
Monetary authorities will hold a rate-setting meeting on Thursday. Economists polled Reuters are divided, with 13 of 24 forecasting the BSP will hold it key interest rate steady at 6.50%, while the other 11 expect a 25 basis point cut.
Headline inflation accelerated to 4.4% in July, bringing year-to-date print to 3.7%.
— Reporting by Neil Jerome Morales; Editing by John Mair
