The Philippine central bank can start considering an easing of its monetary policy if inflation continued on its path and expectations remain well anchored, its governor said on Wednesday.
Bangko Sentral ng Pilipinas Governor Eli Remolona at a press conference said the Philippines was not yet of out the woods when it comes to dealing with inflation.
The central bank kept its benchmark interest rate steady for a second straight meeting at 6.5 percent on December 14, and said policy would have to stay “sufficiently tight” to bring inflation back to target.
On Wednesday Remolona said the economy could withstand the current interest rate and a rate cut was unlikely in the next few months.
Inflation eased for a second straight month to 4.1 percent in November from 4.9 percent in October and 6.1 percent in September.
That brought the average rate over the 11-month period to 6.2 percent, which was still well outside the central bank’s 2 percent to 4 percent target.
