MANILA, July 11 The Philippine central bank sees
enough room to tweak monetary policy without hurting the
country's economy, a deputy governor said on Friday.
"Domestic demand conditions are likely to remain broadly
resilient, suggesting there is room for measured policy
adjustment without duly dampening the country's growth
momentum," Diwa Guinigundo told reporters at a briefing.
Guinigundo said domestic liquidity growth "remains strong
and continues to pose a risk to inflation." The central bank has
a 2014 inflation target of 3 to 5 percent.
The central bank has taken several modest steps to tighten
liquidity and tamp price pressures so far this year, via
adjustments on its short-term special deposit accounts facility
and banks' required reserves.
But some economists believe its next step will be more
forceful - a hike in its policy rate from the
current record low of 3.5 percent - after inflation averaged 4.2
percent in the first half.
(Reporting by Karen Lema; Writing by Siegfrid Alegado; Editing
by Richard Borsuk)