“Inflation is projected to accelerate to 4.0% in 2019 in line with higher salaries and, as faster growth boosts domestic demand, reach 5.0% in 2020,” says the “Asian Development Outlook 2019 Strengthening Disaster Resilience” report for April, ONA reports.
“A relatively stable exchange rate should prevent high inflation. Over the next 2 years, the central bank is expected to focus on two objectives: maintaining exchange rate stability and limiting inflation to 5.0%,” said ADB.
“The authorities will therefore closely monitor import demand, foreign exchange movements, and capital flows. A stable exchange rate is expected to boost lending to the private sector. If the inflation target is attained, the central bank can be expected to ease the policy interest rate further,” says the forecast.