Philippines can consider policy easing if inflation eases: Central Bank Chief

The Philippine central bank could start considering an easing of its monetary policy if inflation continues on its path and expectations remain well anchored, its governor said on Wednesday.

Bangko Sentral ng Pilipinas Governor, Eli Remolona, at a press conference said the Philippines was not yet of out the woods when it comes to dealing with inflation.

The central bank kept its benchmark interest rate steady for a second straight meeting at 6.5 per cent on December 14, and said policy would have to stay "sufficiently tight" to bring inflation back to target.

Remolona on Wednesday said the economy could withstand the current interest rate and a rate cut was unlikely in the next few months.

Inflation eased for a second straight month to 4.1 per cent in November from 4.9 per cent in October and 6.1 per cent in September.

That brought the average rate over the 11-month period to 6.2 per cent, which was still well outside the central bank's 2 per cent to 4 per cent target.

(With Reuters inputs)