Central bank: no compelling reason to change policy


Posted at Aug 18 2010 01:21 PM | Updated as of Aug 19 2010 03:41 AM

MANILA, Philippines  - The Philippine central bank governor said on Wednesday inflation was seen within target in 2010 and there was no compelling reason to change monetary policy.

"The way we look at the inflation outlook, there is no compelling reason to change the stance of monetary policy at this time," Amando Tetangco told reporters.

In July, the annual inflation rate was 3.9%, holding at a seven-month low it fell to in June. The central bank's next review of monetary policy is on Aug. 26.

The government has set a target of 3.5% to 5.5% inflation in 2010, and 3 to 5 percent in 2011.

Inflation pressures, especially from food and oil prices, have been more moderate than expected in recent months, and the central bank has twice cut its forecasts for inflation in 2010 and 2011.

It now expects average inflation to come in at 4% in 2010 and 3% in 2011.

The central bank has held its policy rate at a record low of 4%  since July 2009. It is among the handful of Asian countries that have yet to lift interest rates after the global financial crisis.