Philippine central bank says too early to declare victory against inflation

BANGKO SENTRAL ng Pilipinas Governor Eli M. Remolona, Jr. — BANGKO SENTRAL NG PILIPINAS

MANILA – Philippine central bank Governor Eli Remolona said on Wednesday it was too soon to declare victory against inflation.

Annual inflation quickened to 3.4% in February from 2.8% the previous month reflecting higher food and transport costs.

The central bank, which last month kept its benchmark rate steady at 6.50% for a third straight meeting, will review policy settings on April 4.

Mr. Remolona told a regular briefing the central bank could not say yet that it could cut interest rates soon given upside risks to inflation like higher rice prices.

But he also said it was unlikely the central bank will tighten rates some more. — Reuters

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