MANILA (Reuters): The Philippines' central bank said on Friday it will maintain its current annual inflation target of 2% to 4% through to the end of 2028, saying the outlook was for inflation to stay manageable.
The target range remained an appropriate representation of the medium-term goal for price stability, given the current structure of the economy and the macroeconomic outlook, the Bangko Sentral ng Pilipinas (BSP) said in a statement.
"Prospects for aggregate demand and supply-side conditions point to a manageable inflation outlook despite upside risks," it added.
Last week, the BSP cut last week its key interest rate by 25 basis points to 5.75%, the third consecutive cut, but flagged that
further easing
next year might come in "baby steps" as inflation remains a concern.
"The risk of possible domestic and external shocks will warrant continued close monitoring and proactive intervention measures," the BSP said on Friday.
The central bank said it would continue to ensure monetary policy was aligned with its primary mandate of safeguarding price stability.
Inflation has averaged 3.2% for January to November, within the central bank's 2% to 4% target range for 2024. It expects annual to be between 2.3% to 3.1% in December, with the full-year figure averaging 3.2%.
(Reporting by Neil Jerome Morales; Editing by Himani Sarkar and John Mair) - Reuters
