THE Development Budget Coordination Committee (DBCC) is sticking to the government’s inflation targets for the next three years in line with the central bank’s assessment of current inflation developments.
In a statement on Monday, the Bangko Sentral ng Pilipinas (BSP) announced that the DBCC, through its Resolution 2014-2 dated February 3, 2014, decided to maintain the 3 percent to 5 percent inflation target for 2014.
The central bank said that the current government target for 2014 remains appropriate for the Philippine economy based on the most recent assessment of current inflation developments, evolving economic and financial trends, as well as indicators of the public’s inflation expectations and the BSP’s emerging forecasts.
The DBCC also decided to maintain the medium-term inflation target of 2 percent to 4 percent for 2015 and 2016.
“The announcement of these targets is in line with the BSP’s commitment to greater transparency and accountability in its conduct of monetary policy,” it stated.
The BSP earlier said that the targets for 2015 and 2016 continue to be consistent with the country’s current inflation dynamics and outlook for the next couple of years and the expected higher potential capacity under a low inflation environment.