BSP: April inflation to fall between 3.7% to 4.7%

Inflation this month will settle between 3.7 percent and 4.7 amid the global escalation of oil and food prices, the Bangko Sentral ng Pilipinas (BSP) said Thursday. In a text message to reporters, BSP Governor Amando Tetangco Jr. said the bank expects Philippine inflation to behave well in April and to fall within the BSP’s 3- to 5-percent target for 2011. The central bank’s policy-setting Monetary Board raised interest rates by 25 basis points in March to manage the inflation in the face of escalating oil and food prices worldwide. The move brought the overnight borrowing rate to 4.25 percent and the overnight lending rate to 6.25 percent. Earlier, the Philippines’ benign inflation outlook allowed the Monetary Board to keep its interest rates steady for 20 months. http://www.gmanews.tv/story/202879/monetary-board-keeps-policy-rates-unchanged Inflation pressures have continued to build up, however, because of the rising prices of oil in the world market, triggered by the political tensions in the Middle East and North Africa. The Monetary Board will hold its policy-setting meeting next May 5. "Nevertheless, we will continue to monitor developments, particularly movements in international commodity prices to see if there would be a need to make adjustments in our policy stance," Tetangco said. Wage hike The BSP’s inflation forecast came three days ahead of Labor Day, when workers’ groups plan to stage a “Day of Outrage" and call for a legislated wage hike amid rising prices. The Palace on Tuesday said the President might announce “good news" on Labor Day if the economic managers are able to complete their recommendations on cushioning the impact of soaring oil prices.
For the latest Philippine news stories and videos, visit GMANews.TV Last month, President Benigno Aquino III opened the possibility of a wage hike if inflation hits 5 percent, according to a report on GMA’s “24 Oras" newscast. — With Paterno Esmaquel II/VS, GMA News