MANILA - The Bangko Sentral ng Pilipinas on Monday said it remains committed to keeping a balance between supporting the economy and managing inflation.
In 2021, the BSP kept the benchmark borrowing rate at 2 percent to support economic recovery while saying that the uptick in inflation was "transitory."
Inflation averaged at 4.5 percent in 2021 using the 2012 base year but when using 2018 as the base year, inflation settled at 3.9 percent or within the 2 to 4 percent target range.
This year, inflation is projected to settle at 3.4 percent and 3.2 percent in 2023, the BSP said.
“The BSP remains steadfast in striking a balance between providing adequate stimulus to the economy and preventing build-up of inflationary pressures and risks to price and financial stability,” BSP Governor Benjamin Diokno said.
“The BSP’s accommodative monetary policy and extraordinary measures ensured adequate liquidity in the financial system that accelerated domestic economic activity amid the pandemic,” he added.
As of today, the central bank said its liquidity-easing measures in response to the pandemic reached P2.3 trillion or about 12.03 percent of the country's gross domestic product (GDP).
The economy grew 5.6 percent in 2021, slightly overshooting the government target.
The BSP will hold a monetary policy-setting meeting on Thursday, Feb. 17.