Bangko Sentral ng Pilipinas Governor Benjamin Diokno said the benign inflation environment provides monetary authorities enough space to tweak the policy stance if warranted during the pandemic.
Diokno said in a presentation during the Standard Chartered Bank sovereign investor forum on Oct. 15 that inflation remained manageable at 2.5 percent in the first nine months and was seen to settle between 1.75 percent and 3.75 percent this year and 2 percent to 4 percent percent next year and in 2022.
“Favorable inflation provides an enabling environment for growth. This gives room for the BSP to further ease monetary policy, in case needed,” he said.
Diokno said the Bangko Sentral was quick and decisive in responding to the crisis. He said BSP’s actions were meant to boost market confidence and cushion economic activity; provide liquidity to complement government programs; sustain financial stability; and support continuous delivery of financial services.