Our latest forecasts show that the path of inflation will be consistent with the National Government’s target range of 2 to 4 percent in 2016–2017. However, there are potential upside pressures to inflation. Food prices are likely to be affected by El Niño, other weather disturbances, and increases in utility rates.
On the other hand, downside risks could come from slower-than-expected global economic activities that could further lower oil and commodity prices. The BSP will continue to monitor national and global developments to ensure that our monetary policy stance remains appropriate. In addition, the BSP will continue to find ways to further enhance the effectiveness of our monetary policy.