Metro Manila (CNN Philippines, August 4) — Despite inflation rates coming down in the recent months, Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona said the country is “not out of the woods” yet and possible hikes may be implemented soon.
\”We’re looking very carefully at the numbers. So far, inflation rates have been coming down but there’s upside risks. And so, we’re not out of the woods,\” the newly appointed governor told CNN Philippines’ The Final Word.
Data from the Philippine Statistics Authority (PSA) earlier showed that the June inflation was slower at 5.4% than the 6.1% posted in May.
June’s inflation rate is within the 5.3% to 6.1% forecast range of the BSP for the month.
The central bank previously forecast that the July inflation rate may settle within the range of 4.1% to 4.9%, a drop from 5.4% in June.
However, Remolona said BSP is ready to raise rates as soon as their next policy meeting on Aug. 17 if numbers show the need.
The bank chief said recent typhoons Egay and Falcon have put pressure on inflation rates, hiking prices of commodities due to the devastation impacting supply.
Remolona added that nearby Asian neighbors including India, Thailand, and Vietnam’s recent policies which raise prices of supply also add to the pressure on rates.
\”We’re not out of the woods yet because of these kinds of factors, supply side factors,\” he noted. \”We’re continuing to watch the data and we’re gonna be ready to raise if necessary.\”
