Philippine central bank lowers inflation forecasts for 2014 to 2016

[MANILA] The Philippine central bank lowered its inflation estimates for 2014 to 2016 as slowing commodity prices point to a more manageable inflation outlook, a deputy governor said on Thursday.

The central bank expects average 2014 inflation at 4.2 per cent against a previous estimate of 4.4 per cent. It also sees the rate at 3.0 per cent in 2015 from 3.7 per cent previously, Diwa Guinigundo, central bank deputy governor, told reporters.

The central bank expects inflation to ease to 2.6 per cent in 2016, against a previous forecast of 2.8 per cent.

Earlier on Thursday, the central bank kept steady its policy rate and the rate on its short-term special deposit account with indications inflation will remain relatively stable in the near term.

REUTERS