BSP sees annual inflation in July at 4.1-4.9 pct

Reuters

Posted at Jul 30 2014 05:12 PM | Updated as of Jul 31 2014 01:12 AM

MANILA - The Philippine central bank is ready to "implement policies" to tame price pressures as it forecast annual inflation in July to be between 4.1 and 4.9 percent.

Bangko Sentral ng Pilipinas Governor Amando Tetangco said the forecast for July inflation takes into account higher prices of rice and electricity and a decline in the cost of petrol and some agricultural products.

"The BSP stands ready to implement policies to keep inflation expectations well-anchored and protect the government's inflation targets," Tetangco said in a mobile text message ahead of a policy meeting on Thursday.

The top end of the forecast is the highest since October 2011 when the rate hit 5.2 percent.

Twelve economists polled by Reuters were split down the middle on the main rate: six expected no change but the remaining six forecast it would be raised by 25 basis points to 3.75 percent.

Even the six who forecast no change thought the central bank would tighten monetary conditions slightly by raising the rate on its SDAs. One economist thought BSP would raise both rates.