Bangko Sentral ng Pilipinas (File photo / Philippine Daily Inquirer)
The Philippines central bank said on Friday it is necessary to keep monetary policy settings sufficiently tight until a sustained downtrend in inflation becomes evident.
It will take appropriate action as needed to bring inflation back to target, Bangko Sentral ng Pilipinas (BSP) said in a statement after the statistics agency reported that inflation was at 3.9 percent in December.
The Philippine Statistics Authority on Friday said this was slower than the 4.1 percent clip reported in November and was the lowest inflation rate in the past year.
The BSP or the Philippines Central Bank has kept the country’s benchmark target reverse repurchase rate (RRP) steady at 6.5 percent during their December meeting.
BSP Governor Eli Remolona Jr. had said interest rates are unlikely to be cut while inflation remains above the target range. /with reports from Carlo Lorenciana
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