BSP says easing CPI allows policy flexibility

Reuters

Posted at Feb 24 2009 03:47 PM | Updated as of Feb 25 2009 01:43 AM

The Bangko Sentral ng Pilipinas (BSP) has leeway to cut policy rates further with inflation remaining on a decelerating path, BSP deputy governor Diwa Guinigundo said Tuesday.

BSP's next rate-setting policy meeting is on March 5.

"Monetary policy will continue to focus on price stability, to the extent that we have scope to reduce interest rates and continue easing monetary policy, and that flexibility is provided by a good inflation outlook," Guinigundo told a business forum.