After 17 consecutive months of inflation exceeding its target, concerns are emerging about the Bangko Sentral ng Pilipinas (BSP) potentially missing its inflation goals and facing credibility issues.
This comes as inflation remains above the BSP’s defined target range of two to four percent, posing challenges for the central bank’s mandate to maintain low and stable consumer prices.
The Bank of the Philippine Islands (BPI) has cautioned that prolonged high inflation could impact the BSP’s credibility as an inflation-targeting central bank, potentially limiting its ability to control inflation.
The BSP is mandated to maintain a “low and stable” consumer price index (CPI).
However, BSP officials remain confident in their inflation forecasts and expect inflation to return within the target range in the coming quarters.