BSP has room to mitigate any price pressures
MANILA - The Philippine central bank has room to cushion the impact of any price pressures if tensions in the Middle East push up commodity costs, Governor Amando Tetangco said on Thursday.
"The BSP (central bank) has room in its policy toll kit to mitigate potential adverse effects coming from these factors," Tetangco said in a text message to reporters after data showed annual inflation eased more than expected to 2.1 percent in August, the lowest rate in four years.
The central bank kept its key policy rate steady at a record low of 3.5 percent and the rate on its special deposit account facility unchanged at 2.0 percent at its July 25 meeting. It next meets to review policy on Sept. 12.