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Monetary Board Sees Risk Of Inflation Target Breach In 2024

BSP

Bangko Sentral ng Pilipinas released the minutes of its monetary policy meeting held on September 21, during which policymakers decided to keep interest rates unchanged.

  • "Latest BSP baseline projections show a slightly higher inflation path. Nonetheless, inflation is still projected to revert to the 2 to 4 percent target range by Q4 2023 in the absence of further supply-side shocks." However, "the risks to the inflation outlook are still tilted to the upside for 2023 to 2025 and may trigger a possible breach of the inflation target in 2024."
  • "The Monetary Board deemed it appropriate to maintain prevailing monetary policy settings while emphasizing the BSP’s focus on resuming monetary policy tightening action to respond to emerging upside risks to the inflation outlook and potential second-round effects that could dislodge inflation expectations."
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