Bangko Sentral says monetary support for growth not needed

The Bangko Sentral ng Pilipinas sees no need to provide monetary policy support for economic growth with government spending on infrastructure expected to increase in coming months, Governor Amando Tetangco Jr. said.

 

Inflation could possibly fall below the low end of the 2 to 4 percent target for the year, although there could be price rise risks from a prolonged period of El Niño-influenced weather, he said.

 

"Right now, as we see it, inflation expectations are well-anchored," Tetangco said in an email to reporters. "There is still also no strong impetus to provide support to growth."

 

The central bank kept its benchmark interest rate steady at 4.0 percent for a fifth straight meeting on May 14, and will meet next on June 25 to review policy. – Reuters