BSP eyes steady monetary policy despite slower inflation

The Philippine domestic inflation rate slowed to 3% in January, down from December's 3.2%, according to the Philippine Statistics Authority.

Economists like ING Bank Manila's Nicholas Mapa suggest that despite this deceleration, potential upside pressures and looming Federal Reserve rate hikes may prompt the Bangko Sentral ng Pilipinas (BSP) to raise key policy rates.

The BSP maintains its accommodative monetary stance, citing expectations of further inflation deceleration in coming months and a target range of 2% to 4% for 2022-2024.

Given the manageable inflation outlook, the BSP sees room to remain patient with current policies while monitoring potential risks to inflation and financial stability.