BSP says inflation expectations well-anchored

MANILA – The governor of the Philippine central bank said on Thursday that inflation expectations were well anchored and that it would monitor foreign exchange markets to ensure price moves were not excessive.

“Inflation expectations continue to be well anchored. Underlying fundamentals remain sound,” Amando Tetangco said in an telephone text message to reporters ahead of the central bank’s policy meeting on Thursday.

“Therefore, we continue to be watchful of market conduct, including price movements in the FX market to ensure these are not excessive and that these remain consistent with overall price and financial stability objective.”

The Philippine central bank is expected to keep its policy rate steady at 3.5 percent for a fifth meeting in a row, but six of 13 analysts polled by Reuters see a possible cut in the special deposit account (SDA) rate to help ease pressure on its balance sheet. –Reuters