Inflation to remain benign in 2013 - BSP

Posted at Jan 15 2013 05:05 PM | Updated as of Jan 16 2013 01:05 AM

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MANILA, Philippines - Bangko Sentral ng Pilipinas Governor Amando M. Tetangco, Jr. said inflation will likely remain benign this year as interest rates will stay at record lows.

Tetangco made the statement on Tuesday ahead of a rate-setting meeting next week.

The BSP's latest estimates showed inflation will slow down to an average 3.1% this year from last year's 3.2%.

Low inflation has allowed the central bank to cut interest rates four times last year to a record low of 3.5%.

But British bank Barclays on Monday said stronger-than-expected economic growth on the back of rising consumption, income and loose credit could stoke inflation that could prompt the BSP to begin raising interest rates by the fourth quarter.

ANC News Now, January 15, 2013.