MANILA - The Bangko Sentral ng Pilipinas (BSP) has enough tools to manage large inflows of foreign capital so there is no need to impose new policies to restrict an influx of funds, Governor Amando Tetangco said.

"We have the necessary monetary tools at our disposal and the appropriate prudential measures on bank fx (foreign exchange) positions in place that there may be no need for us to come up with new measures to regulate fx flows," Tetangco said in an email seen on Wednesday.

"Nevertheless, we constantly review our fx regulations to ensure that these provide the correct incentives to attract foreign direct investments into the productive sectors of the economy."

Higher capital inflows have resulted in currency appreciation mainly in emerging markets in Asia and Latin America, prompting central banks to adopt or study steps to control inflows.

Taiwan earlier this month banned foreign funds from investing in time deposits in what appeared to be aimed at deterring currency speculation, while Brazil last month slapped a 2% tax on capital inflows.

"Excessively volatile capital flows are obviously a risk to inflation to the extent that these create excess domestic liquidity and impinge on the fundamental value of the exchange rate," Tetangco said.

But authorities have said the inflation outlook remains manageable and domestic consumer prices are forecast to fall safely within this year and next year's inflation target of 2.5-4.5% and 3.5 to 5.5%, respectively.

Tetangco has repeatedly said monetary authorities only act to smoothen volatility in the peso, up 1.5% this year, to help businesses and consumers plan more effectively.

BSP Deputy Governor Diwa Guinigundo earlier warned that capital controls would scare the market and drive away foreign investors.