Philippine central bank maintains 2-4% inflation target through 2024

[MANILA] The Philippine central bank has set its inflation target for 2023-2024 at 2-4 per cent, seeing a benign inflation path in the coming years as the country recovers from the coronavirus pandemic.

The inflation target "continues to be an appropriate quantitative representation of the medium-term goal of price stability", the central bank said in a statement late on Friday.

It was approved by the inter-agency body in charge of setting the government's macroeconomic goals and policies on Dec 3, the central bank added.

The inflation target is 2-4 per cent in 2020 to 2022. Inflation is expected to average 2.6 per cent in 2020, 3.2 per cent in 2021 and 2.9 per cent in 2022.

"The assessment of factors that could influence inflation suggests manageable inflation environment over the near term," the central bank said.

For 2023 and 2024, inflation would largely be influenced by the pace of economic recovery in the post-pandemic period, it added.

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The Philippine central bank has been one of the most aggressive central banks globally in policy easing, slashing rates by a cumulative 200 basis points this year. It left key interest rates steady at its last policy meeting in 2020, but signalled readiness to take further action if needed.

REUTERS