BSP says inflation expectations firmly anchored
MANILA - The Philippine central bank said on Thursday that inflation expectations remained "firmly anchored" despite robust domestic activity that is supported by buoyant consumer demand.
Diwa Guinigundo, central bank deputy governor, told reporters the monetary authority kept its forecast for average inflation this year at 3.0 percent, at the low end of the central bank's target of 3-5 percent.
It raised slightly its forecast for average 2014 inflation to 4.0 percent while lowering its 2015 estimate to 3.4 percent.
The central bank held its policy rate and special deposit account (SDA) rate steady on Thursday, as widely expected, because of benign inflation and sustained economic growth.