BSP: March inflation keeps outlook within target range

Bangko Sentral ng Pilipinas (BSP) (Photo By patrickroque01/Wikimedia Commons, CC BY-SA 4.0)

By Kris Crismundo, Philippine News Agency

MANILA – The Bangko Sentral ng Pilipinas (BSP) sees inflation to remain within its target range following the 1.8 percent rate for March 2025.

“The latest inflation outturn is consistent with the BSP’s assessment that inflation will remain within the target range over the policy horizon. This is seen to be aided by the impact of lower rice tariffs and easing global commodity prices,” the central bank said in a statement Friday.

BSP’s target inflation rate this year is between 2 to 4 percent.

For 2025 and 2026, the BSP said outlook continues to be “broadly balanced”, with upside risk coming from the utilities sector while downside risk is the impact of lower tariffs on imported rice.

While the Monetary Board maintains its outlook on gross domestic product growth to be firm, the uncertainty over global economic policies and their implications on the domestic economy has increased significantly.

“Looking ahead, the BSP will maintain a measured approach to monetary policy easing to ensure price stability conducive to sustainable economic growth and employment. On balance, uncertainty in the outlook for inflation and growth continues to be a key factor in the setting of monetary policy,” the central bank added.

It added that its Monetary Board will consider the latest inflation data along with the latest domestic and global development in its policy meeting on April 10.

This would include the announcement of US President Donald Trump for reciprocal tariffs worldwide, wherein the Philippines will be imposed with 17 percent tariffs for its exports to the US.