BSP says no need to change policy for now


Posted at Jul 21 2015 07:36 PM | Updated as of Jul 22 2015 03:36 AM

MANILA - The Philippine central bank sees no need to change its current policy, but is ready to take appropriate policy action to address any emerging risks, its governor said on Tuesday.

Despite inflation hovering below 2 percent, the monetary authority is not inclined to revise its policy given threats of an extended El Nino dry weather phenomenon and power rate hikes, Amando Tetangco, governor of the Bangko Sentral ng Pilipinas (BSP) told Reuters in an interview at his Manila office.

The central bank also does not have to move in sync with the Federal Reserve when the U.S. monetary authority starts to raise interest rates, he said.

"We are in a position that we can first wait and observe. We are in a good situation right now," said Tetangco, a two-time central bank governor and an economist by training.

"If there is a need to change then and it can be monetary policy, it can be other policies like macroprudential," the career central banker also said. "At this time, we don't see a need to change."

The Philippine central bank has held its benchmark interest steady at 4 percent since October 2014 in the face of slowing growth and easing inflation, saying upside risks to inflation warrant care in setting future policy decisions.