In a press briefing, BSP Governor Eli Remolona Jr. said this decision reflects a shift in inflation risks to the downside for 2024 and 2025, mainly due to lower import tariffs on rice ordered by President Marcos recently.
While higher prices of non-rice food items, transport charges, and electricity rates pose some upside risks, inflation is nearing the midpoint of the 2-4% target range, he said.
The BSP's latest forecasts indicate inflation easing to 3.1% for both 2024 and 2025 from 3.8 percent and from 3.7 percent, respectively.
The Monetary Board also noted favorable domestic output growth prospects, driven by a strong labor market and robust net exports.
With price pressures expected to ease further in the second half of the year, the Monetary Board considers maintaining current monetary policy settings appropriate, while remaining cautious of external uncertainties, Remolona said.
