The Philippine central bank is active in the forex market and selling strategically, its governor said on Friday, adding the monetary authority will not allow “excessive” forex movements.
Governor Felipe Medalla said the Bangko Sentral ng Pilipinas (BSP) would have to respond if the U.S. Federal Reserve hikes rates twice more this year, but added that in real terms interest rates in the Philippines were not that high.
The central bank, which has so far raised policy rates PHCBIR=ECI by 225 basis points this year, including in an off-schedule hike in July, has two more meetings left this year.
Medalla said there will no longer be off-cycle rate actions from the central bank this year.
—Reporting by Neil Jerome Morales; Editing by Raissa Kasolowsky and Kanupriya Kapoor
