BSP says no need to hike rates if no further supply shocks

September 14, 2023 - 4:09 PM
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Bangko Sentral Headquarters on Roxas Boulevard, Manila taken January 2021. (Patrick Roque via Wikipedia)

MANILA There is no need for the Philippine central bank to raise interest rates if there are no further supply shocks like those seen in August, its governor said on Thursday.

Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona, in remarks ahead of the central bank’s Sept. 21 policy meeting, also said Philippine inflation should hit the 2%-4% target range by October barring any further supply shocks.

“We’re really, really serious about price stability,” he said in a press conference held as part of the BSP’s hosting of an international gathering on financial inclusion in Manila.

“In deciding on what to do with the policy rate, we look at whether we’re comfortable with the target range.”

Philippine inflation quickened for the first time in seven months in August, hitting 5.3% year-on-year due largely to an uptick in food and transport costs.

That brought the January-August average to 6.6%, well outside the central bank’s 2%-4% comfort range.

– Reporting by Mikhail Flores