MANILA, Nov. 3 (Xinhua) -- The Philippine central bank remains in a tightening cycle as inflation stays elevated, Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr. said on Tuesday.
Headline inflation settled at 7.2 percent in September, well above the government's 3 percent target. The BSP raised rates by 50 basis points last month, and Remolona said inflation is expected to peak in "a few more months."
The BSP projects average inflation at 6.1 percent this year, around 6 percent in 2027 and near the 3 percent target in 2028. It has so far raised policy rates by a total of 125 basis points this year.
Remolona said the BSP weighs both inflation and economic growth in rate decisions, including the output gap, the difference between actual and potential growth.
He expressed hope that growth will start recovering in the fourth quarter of this year or early next year, with the government trying to accelerate spending. ■