Economy 1 MIN READ

UPDATE 1-Philippine in no rush to hike rates, governor says

February 9, 2022By Reuters will continue supporting economic recovery

Monetary authorities to set rates on Feb. 17

Recasts lead, adds details

The Philippines central bank will not necessarily have to move in pace with the U.S. Federal Reserve, which is expected to tighten monetary policy in March to tackle inflation, its governor said on Wednesday.

Governor Benjamin Diokno said the Bangko Sentral ng Pilipinas (BSP) was in no rush to raise interest rates with the country’s inflation projected to remain inside its 2% to 4% target range this year.

“We will try to be patient to make sure that we are really on our way to recovery,” Diokno told foreign correspondents.

The Fed has signaled it will likely begin to hike interest rates in March and wind down asset purchases to target rising inflation.

The BSP will meet for the first time this year on Feb. 17 to set its benchmark interest rate PHCBIR=ECI, which has been kept at a record low of 2.0% since November 2020 to support economic growth.

(Reporting by Karen Lema and Neil Jerome Morales; Editing by Martin Petty)

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