BSP to review policy, protect inflation goal

Posted at 08/30/12 1:06 PM

MANILA - The Philippine central bank has enough room in its policy tool kit to address possible risks to the government's inflation goal of 3-5 percent this year, its governor Amando Tetangco said on Thursday.

Bangko Sentral ng Pilipinas "will review the stance of policy and calibrate any further action taking into account, among others, the impact of further acceleration in government spending towards rehabilitation and reconstruction after recent natural calamities, weaknesses in global demand, and possible further improvements in market sentiment toward peso assets," Tetangco told reporters via a mobile text message.

The BSP, which next meets to set rates policy on Sept. 13, cut its overnight borrowing rate by a combined 75 basis points in January, March and July to a new low of 3.75 percent to boost domestic growth amid the global downturn.