(Adds quote from c.bank governor, GDP outlook, background)
MANILA, April 26 (Reuters) - The Philippines' central
bank considers it "dangerous" to cut interest rates faster than
a policy easing by the U.S. Federal Reserve, its governor said
on Wednesday.
While Philippine inflation will decelerate to below 4% late
this year and come in closer to 3% in 2024, the Bangko Sentral
ng Pilipinas (BSP) aims to maintain its interest rate
differential with the Fed, Governor Felipe Medalla told
reporters on the sidelines of a central bank event, ahead of the
BSP's rate-setting meeting on May 18.
"If inflation in the U.S. is sticky and cuts are slow,
it is very dangerous for the Philippine central bank to cut
faster than the U.S.," Medalla said.
Philippine inflation
slowed
for a second straight month in March to 7.6%.
Gross domestic product could have expanded "in the
neighbourhood of 6%" in the first quarter, Medalla said.
A Philippine government inter-agency panel this week
maintained
its economic growth target of 6.0% to 7.0% this year on
robust domestic economic activity amid global headwinds.
(Reporting by Neil Jerome Morales and Enrico Dela Cruz; Editing
by Kanupriya Kapoor)
