Manila:The Bangko Sentral ng Pilipinas (BSP) is meticulously evaluating the effects of recent economic growth data on inflation projections, emphasizing the need for future monetary policy to consider both inflation expectations and the economic growth outlook.

According to Philippines News Agency, the BSP expressed its commitment to achieving price stability amid the challenges posed by high inflation and slowing economic growth. In a statement released late Wednesday, the central bank highlighted its determination to maintain an environment conducive to sustained and balanced growth.

The third quarter of the year saw economic growth slow to 2.1 percent, with elevated inflation impacting consumer spending. As of October, inflation stood at 7.8 percent, surpassing the BSP's target of 3 percent. In response, the BSP's Monetary Board increased rates by 50 basis points last month to address inflation concerns.

The central bank acknowledged the limitations of monetary policy in directly controlling inflationary effects resulting from global supply shocks. Instead, it focuses on mitigating second-round effects. The BSP emphasized the importance of addressing weak aggregate demand while preventing inflation expectations from becoming unanchored.

Restoring price stability and protecting household purchasing power are crucial for rebuilding confidence and supporting economic recovery, According to BSP. The bank remains guided by incoming data and developments related to inflation, inflation expectations, and economic activity to shape its future policy decisions.

The BSP noted that improvements such as easing inflation, stable inflation expectations, increased business and consumer confidence, and a recovery in investment and employment indicate subsiding inflationary pressures and a resurgence in economic activity. The BSP assured that its monetary policy will remain aligned with its mandate to promote price stability conducive to sustainable economic growth.