Philippine central bank says April CPI supports policy stance

[MANILA] Latest data showing that Philippine inflation hit its lowest in nearly two years in April"affirm the appropriatness" of the central bank's monetary policy, the head of Bangko Sentral ng Pilipinas said on Tuesday.

Governor Amando Tetangco said policymakers will nevertheless keep watching developments, especially the actions of the US Federal Reserve and how markets react to its decisions because of their potential impact on Philippines inflation expectations.

The consumer price index rose 2.2 per cent in April from a year ago, below the 2.4 per cent rise predicted by analysts in a Reuters poll, and the lowest rate since the 2.1 per cent recorded in August 2013.

The central bank kept its benchmark interest rate steady for a fourth straight meeting on March 26, with inflation expectation to stay manageable and growth forecast to remain robust. It next meets on May 14.

REUTERS