The September 2020 inflation of 2.3 percent was within the BSP’s forecast range of 1.8 – 2.6 percent.
The latest inflation outturn is consistent with the BSP’s prevailing assessment that inflation is expected to remain benign over the policy horizon with the balance of risks tilting toward the downside due largely to the impact on domestic and global economic activity of possible deeper economic disruptions caused by the pandemic.
Nonetheless, the significant monetary policy easing and liquidity-enhancing measures undertaken by the BSP and the timely implementation of fiscal measures in the Bayanihan 2 Act are seen to provide sufficient support to economic recovery in the coming months.
Indications of gradual improvements in manufacturing and external demand as quarantine protocols are further relaxed here and abroad could also bolster sentiments going forward.
The BSP will continue to evaluate the transmission of BSP’s policy actions to the economy along with the recently approved fiscal measures to address the economic costs of the public health crisis.
The BSP stands ready to deploy all available measures in its toolkit in fulfillment of its policy mandate as it continues to assess the impact of the global health crisis on the domestic economy.