Thread by @PhilippineStar

@GovBenDiokno says the 4.5% inflation in March was within the BSP’s 4.2-5% forecast and consistent with expectations that it could exceed the 2-4% target in 2021, reflecting the impact of supply side constraints on domestic prices of meat and rising oil prices. | @lawagcaoili

@GovBenDiokno @lawagcaoili @GovBenDiokno adds inflation is still seen to return to within target band in 2022 as supply side influences subside. At the same time, timely and effective implementation of direct measures by the National Government could contribute to easing price pressures. | @lawagcaoili

@GovBenDiokno @lawagcaoili The balance of risks to inflation outlook remains broadly balanced around the baseline path in 2021, while leaning toward the downside in 2022. | @lawagcaoili

@GovBenDiokno @lawagcaoili Tighter domestic supply of meat products and improved global economic activity could lend further upward pressures on inflation. | @lawagcaoili

@GovBenDiokno @lawagcaoili However, the ongoing COVID-19 pandemic also continues to pose downside risks to the inflation outlook, as the recent surge in virus infections and challenges over mass vaccination programs continue to temper prospects for domestic demand. | @lawagcaoili

@GovBenDiokno @lawagcaoili At the same time, the Monetary Board emphasizes that the timely implementation of non monetary interventions is crucial in mitigating the impact of supply side pressures on inflation and thereby preventing them from spilling over as second round effects. | @lawagcaoili

@GovBenDiokno @lawagcaoili The Monetary Board is of the view that prevailing monetary policy settings remain appropriate to support the government’s broader efforts to facilitate the recovery of the economy. | @lawagcaoili

@GovBenDiokno @lawagcaoili Looking ahead, @GovBenDiokno says the BSP will remain watchful for any signs of inflation becoming broader based... | @lawagcaoili

@GovBenDiokno @lawagcaoili ...and is prepared to take immediate measures as appropriate to ensure that the monetary policy stance continues to support its price and financial stability objectives. | @lawagcaoili