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The Philippines’ annual inflation rate could soon
rise to 12 percent, which may force Bangko Sentral ng Pilipinas to
hike interest rates again, central bank Governor Amando Tetangco Jr.
said Wednesday.
“Inflation could peak at 12
percent on a year-to-year basis for certain months,” he told a
media briefing.
Tetangco said average inflation
for 2008 would still be about 9 percent to 11 percent and 6 percent
to 8 percent for 2009.
Inflation rose to 11.4 percent in
June, the highest level in 14 years, because of rising food and
energy prices.
The central bank has raised its
key interest rates by 75 basis points since June to try and dampen
the price rises.
Tetangco said promoting price
stability remained the central bank’s main focus, and further
“interest rate hikes cannot be ruled out at this point.”
He said, though, that the food
situation had eased in recent months and that the rise in oil prices
was already slowing down because of lower global consumption and
demand.
Despite the problems, economic
growth for 2008 is still forecast at 5.7 percent to 6.6 percent, Te-tangco
added.
--AFP
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