MANILA, Philippines - The Bangko Sentral ng Pilipinas (BSP) is ready to undertake policy actions, if needed, as it sees rising global oil prices as a key risk to inflation, its governor said on Thursday.
The central bank "is keeping a close watch on evolving price and output dynamics that could affect the price-setting behavior of economic agents," BSP Governor Amando Tetangco said.
"The BSP stands ready to undertake policy actions, as necessary, to prevent inflation expectations from unravelling," he added.
Tetangco, however, said the BSP has not seen yet any widespread second-round effects from the recent price pressures such as higher food costs and transport fares.
The central bank tightened policy for the third straight meeting on June 19, surprising markets by raising the rate on special deposits in a bid to contain liquidity growth and curb inflation pressures.