MANILA: The Philippine central bank is likely to raise its inflation forecasts for this year and the next at its Thursday policy meeting, with the 2014 estimate near the top end of the 3-5 percent target range, its governor said.

At its last policy meeting in May, the central bank forecast average inflation at 4.3 percent this year and 3.4 percent for 2015.

Both remain within the BSP target of 3-5 percent this year and 2-4 percent for 2015.

Amando Tetangco told reporters the Monetary Board is also likely to discuss the impact of a total two-percentage-point hike in banks' reserve requirements, and the US Federal Reserve's taper of its bond-buying programme.