Bangko Sentral ng Pilipinas (BSP) Governor Eli M. Remolona cautioned the market against complacency despite the recent slowdown in inflation, warning of lingering upside risks that demand continued vigilance from policymakers.
Speaking at the BSP’s 30th anniversary event, Remolona stressed the significance of refraining from premature declarations of victory over inflation, as core inflation, which excludes volatile food and energy items, remains elevated.
“We must exercise caution, as certain factors could easily reignite inflationary pressures,” said Remolona during his address before bankers.
Assuring a prudent approach, Remolona affirmed the central bank’s commitment to closely analyze incoming data before making any monetary policy decisions.
With the Monetary Board’s next policy meeting scheduled for August 17, policymakers are set to evaluate the current economic landscape and inflation trajectory.
In the previous Monetary Board policy meeting held on June 22, the BSP revised its inflation forecast for 2023 to 5.4 percent, slightly better than the earlier projection of 5.5 percent announced on May 18. This adjustment reflects the central bank’s responsiveness to the dynamic economic environment.