By LEE C. CHIPONGIAN Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said while February inflation could hit three percent, he thinks it would likely settle at 2.8 percent. “Some economists’ forecast that inflation might breach three percent in February is possible,” said Diokno. “But it is also likely that it might settle at 2.4 percent.” Diokno said based on the BSP forecast range of 2.4 percent to 3.2 percent for the month of February, it is also possible that inflation will drop to 2.8 percent compared to 2.9 percent in January. “The BSP estimates that, with an 80 confidence interval, inflation for February might be within the range of 2.4 percent to 3.2 percent, with point inflation forecast of 2.8 percent,” said Diokno. The BSP Department of Economic Research, in the meantime, said lower prices of petroleum products, electricity, and rice as well as other food products are expected to temper price pressures in February. The government will release the February inflation number on Thursday, March 5. Last February 6, after deciding to cut key benchmark rate by 25 basis points (bps), the Monetary Board also also revised its inflation forecast for 2020 higher to three percent from 2.9 percent while maintaining the 2021 estimate at 2.9 percent. Diokno, in announcing the rate cut, said the manageable inflation environment “allowed room for a preemptive reduction in the policy rate to support market confidence.” “While recent demand indicators still point to a firm outlook for the domestic economy, the Monetary Board believes that a policy rate cut would provide additional policy support to ward off the potential spillovers associated with increased external headwinds,” he said. Diokno said the risks and challenges to both growth and inflation outlook has to be managed carefully, such as the rising geopolitical tensions, higher tariff barriers between the US and its trading partners, and the COVID-19 virus outbreak.