The outlook for inflation remains benign and well within the target range, with expectations staying well-anchored. While potential electricity rate adjustments and higher tariffs on rice imports could exert some upward pressure, these risks are seen as limited. Price pressures are expected to ease in the coming months, the BSP Monetary Board said in a press release.
The Board also highlighted that the outlook for domestic economic growth has softened. This moderation partly stems from weakened business confidence linked to governance concerns over public infrastructure spending, as well as uncertainty in the external environment impacting demand.
On balance, the Monetary Board stated that there is scope for a more accommodative monetary policy stance. The favourable inflation outlook and signs of moderating demand provide room to further stimulate economic activity. BSP reaffirmed its commitment to maintaining price stability conducive to sustainable growth and employment while remaining vigilant to emerging risks.
ALCHEMPro News Desk (SG)
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