Bangko Sentral is mindful of external risks

The central bank said on Friday it will continue to monitor external developments that counterbalance steady domestic demand.

In a text message, Bangko Sentral ng Pilipinas Governor Amando Tetangco Jr. said the central bank remains "mindful of external developments, particularly geopolitical risks that could trigger volatility in commodity prices and portfolio rebalancing."

His remarks follow government data showing inflation was steady at 1.9 percent in July, staying below the central bank's 2-4 percent target for the year.

The central bank expects inflation to average 2.0 percent this year and 3.1 percent in 2017. It kept the overnight borrowing rate steady at 3.0 percent at its June 23 meeting. — Reuters