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Philippines central bank says current policy settings remain appropriate
[MANILA] The Philippine central bank's monetary policy doesn't necessarily have to move in sympathy with other economies, its governor said, and reiterated that current settings remain appropriate for now.
Bangko Sentral ng Pilipinas Governor Amando Tetangco said he expects markets to be volatile as central banks in advanced economies and the region adjust their monetary policies but this should only be "transitory." "While we incorporate other jurisdictions' policy moves into our own reaction function, we do not necessarily have to move in sync with them," Mr Tetangco said in an email to reporters on Sunday.
"For us, our view is that, for now, our policy settings are appropriate. Inflation is seen to be closer to the lower end of our target range over the policy horizon, and demand conditions are strong," Mr Tetangco said.
The central bank will meet on May 14, a few days after the release of April inflation data on May 5.
It kept the overnight borrowing rate steady at 4 per cent at its meeting in March, bucking a global tide of policy easing.