BSP: No need to adjust rates despite faster inflation
The faster inflation rate posted in September isn’t worrying the central bank just yet.
The Bangko Sentral ng Pilipinas (BSP) is not rushing to adjust borrowing rates anytime soon, even if prices of goods rose faster in September by 3.4%.
“The BSP remains of the view that the inflation environment will continue to be manageable over the policy horizon after taking into account the latest assessment of price levels in September,” Governor Nestor Espenilla, Jr. said in a statement on Thursday, Oct. 5.
“Firm domestic economic activity, sufficient liquidity, and well-anchored inflation expectations continue to support current policy settings.”
Food prices saw the biggest increase during the month from a year ago, which was worsened by the impact of weather disturbances which affected costs for corn, fish, vegetables, cereals, flour, bread, pasta, and oils and fats.
The central bank said they will continue to “closely monitor” price conditions for future decisions.