Bloomberg News

Tetangco Sees No ‘Compelling Reason’ to Shift Monetary Policy

October 15, 2011

Oct. 16 (Bloomberg) -- The Philippines’ monetary policy settings are appropriate “for the moment” and there “isn’t a compelling reason for now to shift” as the inflation outlook remains manageable, central bank Governor Amando Tetangco said ahead of an Oct. 20 policy meeting.

Authorities have “policy flexibility to address more significant and sudden changes in global demand and investor sentiment that could adversely impact inflation expectations and domestic growth prospects,” Tetangco said in an email reply to questions late yesterday. The economy has “sufficient liquidity” and authorities are “closely monitoring” growth in credit even as the central bank doesn’t see “excessive build- ups in asset prices that signal any bubble,” he said.

“Inflation is now less of a concern,globally,” Tetangco said. “Our assessment is that inflation will be manageable over the policy horizon, and therefore we can afford to be more supportive of growth, especially in light of protracted weakness in advanced economies.”

To contact the reporter on this story: Max Estayo in Manila at mestayo@bloomberg.net

To contact the editor responsible for this story: Clarissa Batino at cbatino@bloomberg.net


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