MANILA - The Bangko Sentral ng Pilipinas (BSP) said on Thursday that inflation was likely to ease to an average of 3.3 percent in 2009, lower than its previous estimate of 3.4 percent, providing more room for easier policy.

BSP Deputy Governor Diwa Guinigundo told reporters that inflation in 2010 was likely to average 3.5 percent, lower than a previous estimate of 3.7 percent.

However, in the medium-term, the bank was watching out for signs of global demand recovery and price pressures, he said.