Log in
Show password
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Philippine cbank chief signals policy tightening unlikely anytime soon

10/17/2021 | 12:28am EST
FILE PHOTO: A logo of Bangko Sentral ng Pilipinas is seen at their main building in Manila

MANILA (Reuters) - The Philippine central bank chief said on Sunday that domestic inflationary pressures were driven by supply-related factors that do not require monetary policy intervention, and that tightening policy too soon would be more harmful than waiting.

Inflation https://www.reuters.com/article/philippines-economy-inflation-idUSL1N2R1024 slightly eased in September to 4.8% from a near three-year peak in August.

"Since the inflation pressures are coming from the supply side, there appears to be no justification for monetary intervention," Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno said in a statement.

The BSP has kept its key interest rate at a record low https://www.reuters.com/article/philippines-economy-rates-idUSL1N2QP0EW for the past seven policy meetings, citing manageable inflation and uncertain growth outlook. Diokno's comments suggested accommodative policy settings would remain in place to support the economy's recovery from the impact of the pandemic.

"To me, the harm that tightening monetary policy too soon exceeds the harm of moving too late, given that the Philippine economy is at its nascent state of economic recovery," Diokno said.

In any case, he said the BSP would decide on the appropriate timing of its policy change based on the evidence at the time of such decision, and "won't be influenced by opinion makers, market analysts or Twitters".

The BSP expects average inflation this year to be about 4.5%, outside the 2%-4% target band, but Diokno believes the uptick was "transitory" as the headline figure is projected to settle at an average of 3.3% in 2022 and 3.2% in 2023.

Diokno said the major upside risk in the remaining months of 2021 is the potential impact of weather disturbances on the prices of key food items.

The rise in world commodity prices and the possibility of a prolonged African swine fever outbreak at home could also keep inflation elevated, but he ruled out any demand-side push to inflation.

(Reporting by Enrico Dela Cruz; Editing by Simon Cameron-Moore)

ę Reuters 2021
Latest news "Economy & Forex"
12:41pEUROPE : European shares drop as Omicron keeps markets volatile
12:31pThyssenkrupp restructure halfway complete, higher margins expected in 2022
12:30pToronto futures up on crude strength, Omicron fears cap gains
12:26pOil climbs as investors focus on looming OPEC+ decision
12:18pREUTERS NEXT-Russian rate hike above 100 bps unlikely in December -Nabiullina
12:15pSpecial Report-U.S. rushed contracts to COVID-19 suppliers with troubled plants
12:10pOn Human Rights Day, the Spotlight is on Mexico on the Scientology Network
12:09pSingapore's Temasek working with portfolio firms in green transition
12:05pEU fines HSBC, Credit Suisse, others over 'Sterling Lads' forex cartel
12:05pSimpleNexus makes third consecutive appearance on Deloitte Technology Fast 500Ö, ranking number 292
Latest news "Economy & Forex"