Philippines’ central bank committed to bringing inflation back to target

MANILA -The Philippine central bank remains committed to bringing inflation back to a target-consistent path, its governor said on Saturday.

While the 2 per cent to 4 per cent target will be missed this year, inflation will normalise next year and in 2024, Bangko Sentral ng Pilipinas (BSP) Governor Felipe Medalla said in a country dialogue on the sidelines of the annual meetings of the International Monetary Fund and the World Bank in Washington.

“It will take all the necessary measures, including raise interest rates, to match the U.S. Fed actions,” Medalla said.

The BSP has two more rate setting meetings this year, with the next one scheduled on Nov. 17. Medalla last week ruled out an off-cycle rate action.

Philippine monetary authorities have raised policy rates by 225 basis points so far this year, including in an off-schedule hike in July.

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