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Philippine central bank sees room to keep current policy stance

[MANILA] Easing inflation and strong economic growth will give the Philippine central bank leeway to maintain its current policy stance, its governor said on Friday.

Governor Amando Tetangco told an economic forum average inflation this year was seen within the government's 2 per cent to 4 per cent target, after it came in at 4.1 per cent in 2014.

The central bank, which meets for the first time this year on Feb. 12, is widely expected to hold the benchmark interest rate steady at 4.0 per cent, and keep it at that level in the first half or longer mainly due to slowing inflation.

The Philippines closed 2014 as the fastest-growing economy in Asia after China, regaining momentum in the final quarter of the year on strong farm output and construction activity.