'Well-behaved' inflation to stay within BSP target in 2020: ING Bank

ABS-CBN News

Posted at Dec 05 2019 04:06 PM | Updated as of Dec 05 2019 04:11 PM

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MANILA -- Inflation will likely be "very well behaved" in 2020, staying within the central bank's target range after stabilizing this year, an economist said Thursday.

The consumer price index will likely grow by 3 to 3.1 percent next year, within the Bangko Sentral ng Pilipinas' 2 to 4 percent goal, ING Bank senior economist Nicholas Mapa told ANC.

Inflation crept up to 1.3 percent in November, meeting analysts' expectations as the effect of a high base from the previous year wore off.

Mapa said inflation would "bounce and settle" to the BSP target due to the absence of El Nino and La Nina weather events next year. The gloomy outlook for the global economy will also keep commodity prices stable, which will aid consumption, he said.

The BSP will have "more scope" in 2020 to cut the benchmark borrowing rate, currently at 4 percent, by another 50 basis points, he said.