Philippine central bank trims 2014-2016 inflation estimates

[MANILA] The Philippine central bank lowered its inflation estimates for 2014 to 2016 as it sees signs that oil prices will trend downward and considers risks to the inflation outlook broadly balanced, a deputy governor said on Thursday.

The central bank expects average 2014 inflation at 4.4 per cent against a previous estimate of 4.5 per cent. It also sees the rate at 3.7 per cent next year from 3.8 per cent previously, Diwa Guinigundo, central bank deputy governor, told reporters.

The central bank expects inflation to ease to 2.8 per cent in 2016, rather than a previous forecast of 3.0 per cent.

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

REUTERS