BSP optimistic inflation will be back to target by Q4

MANILA — The Bangko Sentral ng Pilipinas said it is optimistic that inflation will be back within the target later this year after hitting 14-year high earlier this year.

During the Philippine Economic Briefing held in Toronto late Thursday, newly appointed BSP Gov. Eli Remolona highlighted the country's strong recovery from the pandemic and its flexible inflation targeting framework, which is focused on price stability.

Inflation in June eased to 5.4 percent from 6.1 percent in May.

Remolona said it is expected to settle within the 2 to 4 percent target range by the fourth quarter of this year.

"We think, at least our models tell us, that we will be within target range of 2 to 4 percent by Q4, by the last quarter this year," he said.

"The 2 to 4 percent is not an arbitrary range. That's a range, which we think is ideal for an economy like the Philippines which is growing at full capacity," he added.

• Inflation further eases to 5.4 percent in June

The central bank chief also said the Philippines' strong banking system supported the Philippines' strong recovery from one of the world's longest lockdowns.

During the event, Remolona also signified the BSP's commitment to support the country's climate change initiatives with its own sustainability strategies.

• Marcos Jr. appoints Monetary Board member Eli Remolona as new BSP Governor
• How some poor Filipino families cope with rising prices