BSP to scrutinize inflation data during next week’s policy meet

The Monetary Board will take into consideration “very rich and broad” data when it meets next week.

The policy-setting body of the Bangko Sentral ng Pilipinas will scrutinize inflation data and other economic factors on Thursday, June 21.

“The MB will be evaluating a very rich and broad range of information at its policy meeting next week,” Bangko Sentral Governor Nestor Espenilla Jr.

“Recent developments on inflation and economic activity are key inputs, but these are certainly not the only consideration,” he said in a text message to reporters on Wednesday.

The Philippine Statistics Authority reported last week that inflation settled at 4.6 percent in May, the fastest in at least five years.

“We’ll be examining closely all the potential drivers of future inflation through the various transmission channels as affected by global developments, expectations formation, and uncertainty,” Espenilla said.

“It’s a fairly complex environment that we need to navigate.”

The Monetary Board has raised key policy rates by 25 basis points last month, on the heels of concerns about an accelerating inflation.

The central bank expects inflation to settle around 4.6 percent this year, compared with the national government’s target of 2 to 4 percent.

Should the board decide to raise interest rates next week, it would be the second monetary policy adjustment for the year. —VDS, GMA News