Philippine Central Bank Keeps Rate Hike on Table Despite Weak GDP Growth

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Or sign-in if you have an account.go9{zf95f1]cicrsxf8u(wf6_media_dl_1.png Philippine Statistics Authority,(Bloomberg) — The Philippine central bank is ready to tighten monetary policy further to guide inflation back to target, Governor Eli Remolona said, while adding that there’s less pressure to do so after last quarter’s surprise economic slowdown. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an Account“The question is what you need to bring inflation back down,” Remolona told reporters on Monday, when asked whether the economy can handle more interest rate hikes. He added that the Bangko Sentral ng Pilipinas is prepared to tighten policy “as much as necessary to bring inflation down to target.”The governor’s remarks signal that the BSP is prepared to sustain its monetary tightening cycle, despite the Southeast Asian nation’s economic growth slumping further last quarter. Monetary authorities, who have raised interest rates by 50 basis points this year, will hold their next rate-setting meeting on Aug. 27. Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againRemolona pointed out that the BSP’s mandate is to maintain price stability, and keeping the economy growing is implied by that mandate.“In the short-run, there’s a problem on growth,” the central bank chief said. He nevertheless said yes when asked if the disappointing economic growth reduces the pressure on the BSP to tighten monetary policy.While easing further in July, inflation in the Southeast Asian nation is still way beyond the the central bank’s 3% target for the year. Still, BSP Deputy Governor Zeno Abenoja separately told reporters that core inflation, which excludes some food and energy items, may have already plateaued.The Philippines has posted the slowest economic growth among Southeast Asian nations that have reported April to June figures. The country is battling elevated inflation from the Iran war that has decimated household consumption, as well as weak investment due to a graft scandal in flood-related infrastructure.—With assistance from Ditas B Lopez.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. 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