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Gov Remolona Says Central Bank Is Ready To Adjust Policy As Needed

BSP

Wires run comments from Bangko Sentral ng Pilipinas Governor Eli Remolona, who wrote in an open letter to President Ferdinand Marcos Jr that the central bank stands ready to adjust policy as needed to "mitigate second round effects and better anchor inflation expectations".

  • The Governor said that inflation will likely settle within the target band in Q1 on the back of negative base effects, but price growth may temporarily rebound above the target due to the impact of El Nino, second-round effects of supply shocks and base effects. Inflation should then return to the target in Q3 and settle near the midpoint in Q4.

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