The September 2020 inflation of 2.3 percent was within the BSP’s forecast range of 1.8-2.6 percent. The latest result is consistent with BSP’s assessment that inflation is expected to remain benign over the policy horizon with the balance of risks tilting toward the downside due largely to the impact on domestic and global economic activity of possible deeper economic disruptions caused by the coronavirus pandemic.
Nonetheless, the significant monetary easing and liquidity enhancing measures done by the BSP and the timely implementation of fiscal measures in the Bayanihan 2 Act are seen to provide sufficient support to economic recovery in the coming months. Signs of gradual improvements in manufacturing and external demand as lockdown protocols are further relaxed here and abroad are also expected to boost sentiments going forward.
The BSP will continue to evaluate the transmission of BSP’s monetary actions to the economy along with recently approved fiscal measures to address the economic costs of the public health crisis.
The BSP stands ready to deploy all available measures in its toolkit in accordance with its policy mandate as it continues to assess the impact of the coronavirus pandemic on the Philippine economy.
