The Bangko Sentral ng Pilipinas (BSP) has said it will implement the appropriate monetary policy response following March inflation rates that fell below eight percent.
The BSP aims to ensure the inflation path weakens over the coming months.
Despite the decline in inflation, the average rate for the first quarter remains at 8.3 percent.
The BSP has forecasted an average inflation rate of six percent for the full year of 2023.
The BSP has called on the government to implement non-monetary measures to mitigate the impact of persistent supply-side pressures on inflation.
The March inflation figures are consistent with the BSP’s prediction that inflation will remain elevated before gradually declining to target ranges by the last quarter of 2023 or as early as October.
BSP Governor Felipe M. Medalla anticipates the impact of the monetary tools utilized to reduce price pressures will allow gradual lowering of the inflation rate until it reaches the government target range of two to four percent by October or November.
The next Monetary Board policy meeting will be held on May 18.