By LEE C. CHIPONGIAN Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said the lower February inflation will be carefully deliberated on when they meet for the Monetary Board’s next policy meeting. The February inflation rate fell to 2.6 percent versus 2.9 percent in January. It is also lower than what was reported same time last year of 3.8 percent. Lower prices of petroleum products, electricity, and rice as well as other food products subdued price pressures last month. The BSP has estimated a February inflation range of 2.4 percent to 3.2 percent with a point inflation forecast of 2.8 percent. “The main drivers for the tamer February inflation rate are the tumbling crude oil prices and the lower food prices,” said Diokno on Thursday. “The BSP will consider these developments in the Monetary Board’s monetary policy meeting on March 19.” Diokno said that the latest inflation turnout is consistent with the BSP’s prevailing assessment that inflation is expected to steadily approach the midpoint of the target range in 2020 and 2021. In a statement, the BSP said that the risks to the inflation outlook are still weighted to the upside for this year and more on the downside for 2021. “Adjustments in utility rates, petitions for transport fare hikes, and the impact of African swine fever (ASF) on meat prices are the main upside risks to inflation. The on going spread of Coronavirus disease 2019 (COVID-19) could have an adverse impact on domestic economic activity and financial market sentiment in the coming months,” said the BSP. It added that the BSP will “ensure that the monetary stance remains consistent with its primary objective of maintaining price stability that is conducive to balanced and sustainable growth of the economy.” In its February 6 monetary policy meeting wherein the Monetary Board decided to cut benchmarch rate by 25 basis points (bps), the BSP re-casted its 2020 inflation forecast higher to three percent from 2.9 percent while keeping its 2021 estimate to 2.9 percent. Diokno, in announcing the rate cut last month, 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. He said recently that the “pursuit of prudent and well-calibrated monetary policy by the BSP continues to support favorable inflation dynamics in the country.” Diokno also said that BSP’s inflation forecasts are close to other outside estimates such as Capital Economics forecast of 2.8 percent inflation for 2020 while Oxford Economics estimates 2.9 percent. The Asian Development Bank and the International Monetary Fund forecasts three percent and 2.6 percent, respectively.