MANILA, Dec 1 (Reuters) – The Philippines central financial institution has coverage flexibility given a resilient economic system and stands prepared to regulate rates of interest to deliver inflation again to focus on, its governor stated on Thursday.
The Southeast Asian nation’s sound economic system offered the central financial institution flexibility “to manoeuvre because it acts to deliver inflation again to the goal,” Bangko Sentral ng Pilipinas (BSP) Governor Felipe Medalla stated in an announcement forward of a Dec. 15 price setting assembly.
Medalla informed Reuters final month the BSP must raise rates in keeping with the U.S. Federal Reserve, whose Chair Jerome Powell on Thursday stated it could scale back the tempo of its price hikes “as quickly as December”.
“The BSP (Bangko Sentral ng Pilipinas) stands prepared to regulate its financial coverage settings,” it stated.
The Philippine economic system grew by a stronger-than-expected 7.6% within the third quarter, backed by shopper spending.
The BSP, which has elevated its benchmark rates of interest by a cumulative 300 foundation factors since Might to battle inflation, might hit pause on price hikes by the primary quarter subsequent 12 months barring “no major shocks“, its governor stated on Tuesday.
Reporting by Neil Jerome Morales
Enhancing by Ed Davies
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