Philippine central bank says its policy decisions not dependent on Fed's
The Philippine central bank said on Wednesday (Mar 20) it is “closely” watching the US Federal Reserve’s actions, but its own monetary policy decisions are not dependent on what the Fed does.
Bangko Sentral ng Pilipinas governor Eli Remolona said the central bank was still “hawkish”, with inflation still hovering close to the upper end of the government’s 2 to 4 per cent target range.
Annual inflation could accelerate further to 3.9 per cent in March from the previous month’s 3.4 per cent due to base effects, Remolona told reporters.
The central bank, which kept its benchmark rate steady at 6.5 per cent for a third straight meeting in February, next meets on Apr 4 to review policy.
“We don’t have to put a lot of weight to what they (Fed) do, unless the markets go crazy, unless they overreact, the peso somehow weakens sharply, then we have to react more decisively. But we don’t expect that,” Remolona said.
Central banks and investors around the world have their eyes on the Fed, which is expected to announce its rates decision at 1800 GMT on Wednesday. It is not expected to make changes to the policy rate, but could offer insights into its outlook on rate cuts. Reuters
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Banking & Finance
UBS CEO says Switzerland should not ‘overshoot’ with capital demands
UBS announces equity conversion provision for almost US$5 billion in AT1 debt
Daiwa Securities to invest US$330 million in Aozora Bank
China to start one trillion yuan bond sale on Friday to boost economy
Philippine peso drops most in Asia as calls for rate cut build
BOJ cuts bond buying in regular operation as yen stays weak