24-1-2024 (MANILA) Highlighting the persisting challenges posed by inflation, Philippine Finance Secretary Ralph Recto asserted on Wednesday that addressing inflation remains a “most urgent concern” that demands immediate attention.
Recto, who assumed the financial portfolio on January 15, serves as the government’s representative on the central bank’s seven-member policymaking monetary board. The board is scheduled to convene for its first meeting of the year on February 15, where it will evaluate the trajectory of policy rates.
In December, headline inflation returned to the target at 3.9 per cent. However, the average inflation for the entirety of 2023 stood at a concerning 6.0 per cent, well above the central bank’s target range of 2 per cent to 4 per cent.
During the last two meetings of the previous year, the central bank maintained its benchmark rate at 6.5 per cent. This decision followed a series of rate hikes totaling 450 basis points since May 2022, aimed at curbing inflationary pressures.
Recto’s emphasis on the urgency of addressing inflation aligns with the broader economic challenge faced by the Philippines. As the monetary board gears up for its upcoming meeting, stakeholders will keenly await decisions and strategies aimed at stabilizing inflation within the central bank’s defined target range.
