BSP: Inflation data justifies rate cut

Reuters

Posted at Nov 06 2012 11:07 AM | Updated as of Nov 06 2012 07:07 PM

MANILA- Data showing the Philippines' annual inflation rate fell to a four-month low in October justified last month's rate cut and the central bank was ready to use various policy tools to ensure price stability, a deputy central bank governor said on Tuesday. 

Diwa Guinigundo said in a text message to reporters that slower inflation would help address the issue of external competitiveness, as he noted demand pressures appear to have receded based on the core inflation data. 

"The BSP will continue to monitor capital flows and the asset markets to ensure that the increments in domestic liquidity do not compromise our price stability objective and do not generate spillover effects, particularly on the real estate industry," Guinigundo said.