Lalo pang bumaba sa 3.8 percent ang inflation sa 1st quarter ngayong taon, mula sa 5.9 percent noong December 2018, ayon kay Bangko Sentral ng Pilipinas Gov. Diokno. Pasok na ito sa target ng gobyerno na 2 hanggang 4 percent.
With a 3.8 percent average inflation rate as of end-March, the Bangko Sentral ng Pilipinas’ (BSP) move to keep key overnight rate steady remains appropriate, according to BSP Governor Benjamin E. Diokno.
“Our prevailing monetary policy stance remains appropriate, given the confluence of easing inflation and firm growth dynamics. The BSP continues to gauge the impact of its monetary policy responses on domestic economic conditions to ensure that inflation remains on track toward the government’s target of two-four percent and that inflation expectations remain anchored,” Diokno remarked during the BSP’s inflation quarterly briefing on Friday.
“While the risks to the inflation outlook are assessed to be evenly balanced this year, the BSP notes that further risks could emerge from a prolonged El Niño weather condition and higher-than-expected increase in global oil and food prices. For 2020, the risks lean toward the downside amid slowdown in global economic activity,” said Diokno.
The BSP official reiterated that they will doggedly remain data-driven “at all time.”
The BSP said that the lower inflation during the quarter “mainly reflected the significant deceleration in food inflation amid improved supply conditions.”
Core inflation also declined to 3.9 percent in the first quarter versus 4.9 percent in the fourth quarter 2018.
Diokno said the key upside risks to inflation remains the adverse weather conditions such as El Niño, the volatile global oil prices and foreign exchange market, and higher electricity rates.
In the meantime, domestic financial market conditions remain stable despite external headwinds, according to the BSP. It noted that the country’s financial system “remained sound as banks’ balance sheets exhibited sustained growth in assets and deposits. At the same time, asset quality indicators remained healthy while capital adequacy ratios continued to be above international standards even with the implementation of the Basel III framework.”
In the first quarter, the BSP has also maintained the same key rate levels with policy rate still at 4.75 percent in the February and March Monetary Board policy meetings.
This is because the BSP still assess that inflation is more manageable. “Inflation pressures have eased further, reflecting mainly the decline in food inflation amid improved supply conditions, while inflation expectations have stabilized further during the quarter. (The) overall prospects for domestic activity continue to be firm, supported by a projected recovery in household spending and the sustained implementation of the government’s infrastructure program,” said the BSP.
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With a 3.8 percent average inflation rate as of end-March, the Bangko Sentral ng Pilipinas’ (BSP) move to keep key overnight rate steady remains appropriate, according to BSP Governor Benjamin E. Diokno.
“Our prevailing monetary policy stance remains appropriate, given the confluence of easing inflation and firm growth dynamics. The BSP continues to gauge the impact of its monetary policy responses on domestic economic conditions to ensure that inflation remains on track toward the government’s target of two-four percent and that inflation expectations remain anchored,” Diokno remarked during the BSP’s inflation quarterly briefing on Friday.
“While the risks to the inflation outlook are assessed to be evenly balanced this year, the BSP notes that further risks could emerge from a prolonged El Niño weather condition and higher-than-expected increase in global oil and food prices. For 2020, the risks lean toward the downside amid slowdown in global economic activity,” said Diokno.
The BSP official reiterated that they will doggedly remain data-driven “at all time.”
The BSP said that the lower inflation during the quarter “mainly reflected the significant deceleration in food inflation amid improved supply conditions.”
Core inflation also declined to 3.9 percent in the first quarter versus 4.9 percent in the fourth quarter 2018.
Diokno said the key upside risks to inflation remains the adverse weather conditions such as El Niño, the volatile global oil prices and foreign exchange market, and higher electricity rates.
In the meantime, domestic financial market conditions remain stable despite external headwinds, according to the BSP. It noted that the country’s financial system “remained sound as banks’ balance sheets exhibited sustained growth in assets and deposits. At the same time, asset quality indicators remained healthy while capital adequacy ratios continued to be above international standards even with the implementation of the Basel III framework.”
In the first quarter, the BSP has also maintained the same key rate levels with policy rate still at 4.75 percent in the February and March Monetary Board policy meetings.
This is because the BSP still assess that inflation is more manageable. “Inflation pressures have eased further, reflecting mainly the decline in food inflation amid improved supply conditions, while inflation expectations have stabilized further during the quarter. (The) overall prospects for domestic activity continue to be firm, supported by a projected recovery in household spending and the sustained implementation of the government’s infrastructure program,” said the BSP.
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