Bangko Sentral ng Pilipinas (BSP) said inflation for the month of November will likely still settle within the target range of the government at between 2 and 4 percent.
“We are still doing some adjustments but initial projection shows it will still be within the range,” BSP Governor Eli Remolona Jr. said.
Official forecasts for November will be released next week. Actual figures, meanwhile, are released on or after the 5th of every month.
Analysts are seeing higher inflation readings for November and December, after the country was hit by six typhoons in the last four weeks.
Remolona said most of the pressure due to the typhoons will be reflected on the December figures.
Inflation rose 2.3 percent in October from the previous month’s 1.9 percent, the Philippine Statistics Authority said, bringing the average inflation in the first 10 months of the year to 3.3 percent, within the BSP’s target range.
Core inflation, which strips out volatile food and energy items, was at 2.4 percent in October, steady with September’s rate.
Remolona on Tuesday said the possibilities are high that key rates will be reduced by December or by the first few months of next year.
“We’re still in the easing cycle. Either we cut in December or we cut in the next meeting, but slowly,” Remolona said, stressing that the cuts will be around 25 basis points (bps).
“(There’s also a) possibility of a pause (for the next meeting). It depends on the available data,” he added.
“Our readings show there are price pressures but the economy is somewhat weak. Inflation pressures may cause us maybe to pause a bit but weak growth may cause us to cut,” Remolona also said.
The Monetary Board last month reduced the key rates of the BSP to 6 percent.
