BSP Sees Inflation Clocking In At 3.2% For 2019
The Deputy Governor of Bangko Sentral ng Pilipinas (BSP) Diwa Guinigundo said on Thursday that they see inflation clocking in at 3.2 percent for the whole of 2019. Earlier this month, BSP noted that “price pressures have started to dissipate with inflation expected to fall within target for 2019 and 2020.”
During his presentation at Foreign Correspondents Association of the Philippines (FOCAP) event in Makati City, Guinigundo said:
“We expect inflation to come down to 3.2 percent in 2019 and farther to 3 percent by 2020.”
He also added that there are risks due to this such as possible adjustment in electricity rates and faster than expected monetary policies.
To ensure that the monetary policy stance remains consistent with its price stability objective, BSP announced in a separate statement earlier this month that it will continue to keep a close watch over price developments.
Meanwhile, Budget Secretary Benjamin Diokno earlier disclosed that the economic managers of the Duterte administration are forecasted inflation to settle between 2 and 4 percent this year.
According to Guinigundo, the Philippine economy has demonstrated “uninterrupted economic expansion” and has established a “domestic source of resilience” to help address the impact of external and domestic challenges.
He also noted that the robust monetary, financial and external sectors would support economic growth over the near and medium-term. The government’s commitment to pursue infrastructure and reform agenda would help promote globally competitive industries in sustaining the Philippine economy.
Lastly, he said:
“Strategic policies and structural reforms, addressing infrastructure gaps, and leveraging the country’s demographic opportunities have played a significant role and will continue to underpin the economy’s path towards balanced, sustainable and inclusive growth.”