MANILA, Dec 1 (Reuters) – The Philippine central bank has policy flexibility amid a resilient economy and stands ready to adjust interest rates to bring inflation back on target, its governor said on Thursday.
The Southeast Asian nation’s solid economy gave the central bank flexibility “to maneuver as it acts to bring inflation back on target,” Bangkok Sentral ng Pilipinas (BSP) governor Felipe Medalla said in a statement ahead of a rate-setting meeting on December 15th.
Medalla told Reuters last month the BSP must hike rates in tandem with the Federal Reserve, whose Chair Jerome Powell said on Thursday it could slow the pace of its rate hikes “once in December.”
“The BSP (Central Bank of the Philippines) stands ready to adjust its monetary policy stance,” it said.
The Philippine economy grew a better-than-expected 7.6% in the third quarter, supported by consumer spending.
The BSP, which has hiked interest rates by a total of 300 basis points since May to fight inflation, could pause rate hikes until the first quarter of next year barring “major shocks,” its governor said on Tuesday.
Reporting by Neil Jerome Morales Editing by Ed Davies
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