BSP policy move goes beyond Fed decision

The Federal Open Market Committee (FOMC) is widely expected to raise interest rates this week, but the Bangko Sentral ng Pilipinas (BSP) on Wednesday said it will have to take into consideration other factors in its next policy meeting.

BSP Governor Amando M. Tetangco Jr. said the central bank will not necessarily move in line with the Fed should it decide to raise policy rates in the US after its meeting on June 13 to 14.

"There are idiosyncratic conditions that we also have to take into account," Tetangco told reporters. "There are many things, like inflation. We are an inflation targeter. So that's the most important consideration for us," he said.

Inflation settled at 3.1 percent in May, slower than 3.4 percent in April.

"There was some deceleration in inflation rate for May, so we'll take that into account," Tetangco said.

"We estimate our inflation forecasts, and we will meet again next week and see if there's been a change in the overall conditions and whether a change in the policy stance will be needed," he added.

The BSP's policy-setting Monetary Board is scheduled to meet Thursday, June 22. — VDS, GMA News