Philippine central bank sees May annual inflation at 1.1% to 1.9%

[MANILA] Philippine annual inflation in May could come in at 1.1 per cent to 1.9 per cent, the Bangko Sentral ng Pilipinas said on Friday, reflecting higher domestic oil and food prices and lower power rates.

Annual inflation remained at 1.1 per cent in April, unchanged from March.

From June 3, the central bank will implement an interest rate corridor, to be accompanied by a term deposit auction facility, to make the transmission of monetary policy more effective.

The central bank has stood pat on rates since October 2014 on strong growth and low inflation. It has a 2-4 per cent target this year.

REUTERS