50% Off! Beat the market in 2025 with InvestingProCLAIM SALE

Philippine Finance Minister: central bank has "probably done enough" to tackle inflation

Published 04/04/2023, 01:01 AM
Updated 04/04/2023, 01:05 AM
© Reuters. FILE PHOTO: Philippine Finance Secretary Benjamin Diokno speaks during an economic briefing following President Ferdinand Marcos Jr's first State of the Nation Address, in Pasay City, Metro Manila, Philippines, July 26, 2022. REUTERS/Lisa Marie David

MANILA (Reuters) - The Bangko Sentral ng Pilipinas (BSP) has "probably done enough" to tackle inflation, the country's finance secretary said on Tuesday, in comments that may add weight to expectations the central bank's policy tightening cycle is nearing an end.

Finance Secretary Benjamin Diokno, who sits on the seven-man policy-making monetary board, said monetary policy was not the only game in town, and the government has non-monetary tools at its disposal to manage inflation.

Diokno's remarks came ahead of Wednesday's release of March inflation data, which according to the BSP likely eased to between 7.4% and 8.2% from 8.6% in February, but still above the government's 2%-4% inflation target for the year.

Diokno said the central bank's March inflation estimate pointed to the likelihood that inflation in the country has already peaked.

He added, however, it was too early to assess the impact of the surprise output cut by oil producers on Philippine inflation.

© Reuters. FILE PHOTO: Philippine Finance Secretary Benjamin Diokno speaks during an economic briefing following President Ferdinand Marcos Jr's first State of the Nation Address, in Pasay City, Metro Manila, Philippines, July 26, 2022. REUTERS/Lisa Marie David

The BSP last month hiked its benchmark interest rate further although at a slower pace of 25 basis points to 6.25%, and said its next policy move would depend largely on how consumer prices will behave in the coming months. It next meets on May 18.

The central bank governor did not immediately respond to a request for comment.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.