Philippine central bank says monetary policy appropriate for now

[MANILA] The Philippine central bank's current monetary policy stance remains appropriate, with inflation likely to remain manageable in the near term, but it is closely watching possible risks from commodity prices and market sentiment, its governor said on Thursday.

"While we see the stance of policy still appropriate at this time, we continue to watch global developments, including possible strong reversals in oil price trends and changes in investor sentiment which could create market volatilities and affect inflation expectations," Governor Amando Tetangco told reporters in a mobile text message.

The consumer price index rose 2.5 per cent in February, matching the median forecast in a Reuters poll and well within the central bank's 2.2-3.0 per cent estimate for the month.

It was the first time the index accelerated since July.

The central bank next meets on March 26 to review policy.

REUTERS