Bangko Sentral ng Pilipinas Governor Felipe Medalla said in a telephone message to Reuters that a pause in interest rate increases was possible “if the April CPI (consumer price index) is not higher than the March CPI”.
Medalla said a “zero or negative month-on-month inflation” may also support the case for a rate hike pause.
Philippine headline inflation eased for a second consecutive month in March to 7.6% from 8.6% in February but it remained above the central bank’s 2%-4% target for the year.
To tackle inflation, the BSP has raised its benchmark interest rate by 425 basis points since May last year to 6.25%. Medalla has said future policy moves would be data-dependent. It next meets on May 18 to review policy.
Source: Economy - investing.com
