BSP projects June inflation rate at 2.2-3 pct within target


Posted at Jul 04 2019 10:03 AM | Updated as of Jul 04 2019 10:17 AM

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MANILA - The Bangko Sentral ng Pilipinas (BSP) on Thursday projected that the inflation rate in June will still fall within the government's target.

"We project that inflation last month was about between 2.2 percent to 3 percent. That's within the target of the government 3 percent +- 1, that's between 2 to 4," BSP Governor Ben Diokno said on ANC's Headstart.

Diokno said the Development Budget Coordination Committee, forecasts that growth would be between 6 to 7 percent.

"Now with the inflation going down, we are optimistic that we will hit at least the lower bound," he said.

The central bank chief has instituted preemptive policies in the BSP. This includes lowering the interest rate by 25 basis points and reducing the reserved requirement from 18 percent to 16 percent.

"What is required right now, because of what happened last year, is to ease, reduce interest rates and to reduce the reserved requirements because there's a new legislation which gave the central bank new instrument to float our own bonds, securities," he said.

Diokno is also committing to reduce further the reserve requirement ratio at the end of his term to single digit numbers.

Meanwhile, the inflation report for the month of June will be released on Friday.