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Pause in rate hike possible in May -cbank governor
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Cbank's monetary policy primarily driven by inflation
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Inflation for 2023 seen below 6%
(Adds quote from cbank governor in 2nd and 3rd paragraph,
details and background from 4th paragraph onwards)
MANILA, April 12 (Reuters) - The Philippines' central
bank could pause its interest rate- hiking cycle at its meeting
next month due to easing inflation, its governor said on
Wednesday.
"We are probably pausing in the next meeting because the
inflation prints are very good," Bangko Sentral ng Pilipinas
(BSP) Governor Felipe Medalla said in a briefing in Washington
aired live on Facebook.
Tempered inflation in April puts monetary authorities in a
position to pause policy, Medalla said, adding that the
inflation average for 2023 will be revised downwards from the 6%
projection.
The Philippine central bank next meets on May 18 to set
benchmark interest rate , which it has raised by 425
basis points since last year to 6.25%.
The BSP was Asia's most aggressive central bank in raising
interest rates to combat elevated inflation and keep up with the
U.S. Federal Reserve's tightening cycle.
The Fed's actions are still relevant but less of a factor in
its decision making, Medalla said, adding that monetary policy
is largely driven by inflation.
Philippine annual inflation hit 7.6% in March,
its second consecutive month of easing, giving the BSP leeway to
pause in its monetary tightening cycle.
(Reporting by Neil Jerome Morales; editing by John Stonestreet
and Bernadette Baum)
