In line with the Bangko Sentral ng Pilipinas’ conduct of monetary policy based on inflation targetting, the Development Budget Coordination Committee (DBCC) through its Resolution No. 2014-2 dated 3 February 2014, decided to maintain the inflation targets at 4.0 percent ± 1.0 percentage point for 2014 and at 3.0 percent ± 1.0 percentage point for 2015 - 2016.
Based on the most recent assessment of current inflation developments, evolving economic and financial trends as well as indicators of the public’s inflation expectations and the BSP’s emerging forecasts, the current 4.0 percent ± 1.0 percentage point target for 2014 of the Government remains appropriate for the Philippine economy.
The Government also decided to maintain the medium-term inflation target of 3.0 percent ± 1.0 percentage point for 2015 – 2016 as it continues to be consistent with the country’s current inflation dynamics and outlook for the next couple of years and the expected higher potential capacity under a low inflation environment.
The announcement of these targets is in line with the BSP’s commitment to greater transparency and accountability in its conduct of monetary policy.