‘No rate hike from El Niño inflation push’

THE ongoing El Niño dry spell, coupled with a mild firming of oil prices, could drive consumer prices higher in the months ahead but not enough to push headline inflation above the government target range and trigger a policy rate hike, ING Bank Manila said in a recent financial markets report.

According to the Philippine Atmospheric, Geophysical and Astronomical Services Administration, the country is now experiencing a mild El Niño effect, which is likely to continue until mid-2015, with the possibility of strengthening toward the end of the year.