BSP: Inflation likely lower than forecast

Reuters

Posted at Jul 22 2011 11:27 AM | Updated as of Jul 22 2011 07:27 PM

MANILA, Philippines - Inflation in the Philippines this year could be lower than what the central bank had assumed at a policy review last month, and inflation pressures were not as strong as previously expected, the central bank governor said on Thursday.

"For the year as a whole, the forecast inflation rate is somewhat lower than what we had projected last month," central bank governor Amando Tetangco told reporters.

At its policy review in June, the central bank had said inflation this year would be at the high end of its 3% to 5% target range.

"There could still be some upward pressure on inflation rates, but it is not as strong as we had projected earlier," he said.

At its June review, the central bank raised banks' reserve requirements and held interest rates steady. It had raised interest rates by 25 basis points at the previous two policy reviews.

The next policy review is on July 28.