GOVERNOR FELIPE MEDALLA — REUTERS
Philippine central bank governor Felipe M. Medalla said on Friday monetary policymakers had done enough to tame inflation, in his clearest signal yet that the Bangko Sentral ng Pilipinas (BSP)was ending its most aggressive tightening cycle in years.
Mr. Medalla said the central bank’s future policy decisions will largely be driven by inflation data, which current forecasts show is on track to settle back within the bank’s 2%-4% target by the fourth quarter.
“There is little reason to raise, there is little reason to cut,” Mr. Medalla told Bloomberg TV a day after the central bank kept rates steady for a second straight meeting.
Mr. Medalla, whose term is set to end in July, said he has not been approached by President Ferdinand Marcos, Jr. about a possible re-reappointment.
“I will not bet my salary that I will stay on. But it’s really an honor to serve,” Mr. Medalla said.
Mr. Medalla is completing the unfinished term of predecessor Benjamin E. Diokno, the current finance secretary. A decision on the next BSP governor is expected within days.
A strong majority of economists in a Reuters poll forecast rates will be held at 6.25% for the rest of the year as price pressures ease. — Reuters