Bangko Sentral ng Pilipinas (BSP) Gov. Eli M Remolona Jr. said the February 2025 inflation outturn of 2.1 percent settled below the BSP’s announced forecast range of 2.2 to 3.0 percent.
“Prices of key food items such as rice and vegetables were lower and contributed to the faster deceleration of inflation during the month. Barring additional supply shocks, the February inflation outturn further supports the BSP’s assessment that inflation will remain within the target range over the policy horizon, aided by the impact of lower rice tariffs and easing global commodity prices,” Remolona said in a statement.
Risk to the inflation outlook continues to be broadly balanced for 2025 and 2026, he said.
“The Monetary Board has noted that the economy’s growth prospects continue to be firm. However, uncertainty over global economic policies and their impact on the domestic economy has increased significantly,” Remolona said.
He said uncertainty about the outlook for inflation and growth continues to be a key factor in the setting of monetary policy.
“In deciding on the timing and magnitude of further reductions in the policy interest rate, the Monetary Board will remain data-dependent and continue to refine its assessment of the potential effects of global policy uncertainty and impact of the previous monetary policy easing. Looking ahead, the Monetary Board will maintain a measured approach to monetary policy easing to ensure price stability conducive to sustainable economic growth and employment,” Remolona said.
Citing economic uncertainty over global trade policies, the policymaking Monetary Board last month decided to keep the key rates of the BSP steady at 5.75 percent.
The Monetary Board will meet again on April 3.
