Philippine central bank trims inflation forecasts for 2016 and 2017

[MANILA] The Philippine central bank on Thursday lowered its forecasts for 2016 and 2017 average inflation.

It revised down the 2016 forecast to 1.8 per cent from 2.0 per cent, Deputy Governor Diwa Guinigundo told reporters.

The central bank also trimmed its forecast for 2017 inflation to 2.9 per cent from 3.1 per cent.

The deputy governor said reasons for lowering the forecasts were reduced prices for crude oil and global growth that "continues to be soft".

The central bank has a 2-4 per cent annual inflation target for both 2016 and 2017.

On Thursday, it left its benchmark interest rate unchanged at 3.0 per cent.

REUTERS