Central bank sees ‘no need’ for policy change for now

ABS-CBN News

Posted at Mar 06 2017 11:39 AM

MANILA – Bangko Sentral ng Pilipinas Governor Amando Tetangco said Monday he saw “no need” to adjust monetary policy “at the moment,” even after Federal Reserve Chair Janet Yellen signaled that a rate hike was likely this month.

Tetangco said the peso’s recent weakness against the dollar as well as auction results showed that the market “has been slowly adjusting” to the possibility of a March rate hike.

“Because the market may have already priced in the March Fed move, we may have no need to make adjustments to policy for the moment,” Tetangco said in a text message to reporters.

“But as I said, we remain data dependent and take into consideration latest and expected developments in our assessment,” he added.

The BSP, which has not tinkered with interest rates since it raised the benchmark rate by 25 basis points in September 2014, meets again to review monetary policy on March 23.

Federal Reserve Chair Janet Yellen all but confirmed last Friday that a rate increase was coming in March, causing global stocks to drop. -- with reports from Reuters