By Joann Villanueva
The Bangko Sentral ng Pilipinas projects inflation to hover between 3.4 and 4.3 percent for September 2012 with the higher end up from month-ago’s level due to oil price volatility.
BSP Governor Amando Tetangco Jr., in a text message to reporters Thursday, said the forecast for the rate of price increases in the ninth month this year “continues to reflect manageable inflation pressures, as the impact of oil price volatility is expected to be dampened by lower electricity prices and broadly stable food prices.”
“Monetary policy settings therefore remain supportive of non-inflationary growth dynamics,” he said.
“Nevertheless BSP will continue to monitor global and domestic developments to ensure that the monetary policy stance stays appropriate,” he added.
Last August, inflation rose to 3.8 percent from the previous month’s 3.2 percent bringing the average during the eight-month period to 3.2 percent.
The government’s inflation target this year until 2014 is a range of three to five percent.
Monetary officials project this year’s inflation to average at 3.4 percent and at 4.1 percent for 2013.
Relatively, Tetangco continue to reiterate that policy stance of the BSP remains appropriate and continue to support expansion of the domestic economy.
Last September 14, central bank’s policy-making Monetary Board (MB) kept the BSP’s policy rates steady after noting that risks to inflation remains “broadly balanced.”
To date, the overnight borrowing or reverse repurchase rate is still at its record-low of 3.75 percent and the overnight lending or repurchase rate is at 5.75 percent.
Tetangco then said that although inflation has risen due to the uptick in August rate of price increases and increases in global oil and other commodity prices “future inflation path remains well within the target.”