Philippine cbank says sees more scope to cut rates in Aug on slower inflation
Recasts to lead on governor's policy comments
MANILA, July 8 (Reuters) -The Philippine central bank has more scope to cut interest rates at its next meeting in August after annual inflation slowed in June, its governor said on Monday.
Last month's 3.7% inflation rate was slightly below central bank expectations,Bangko Sentral ngPilipinas (BSP) Governor Eli Remolona told a media forum. Annual inflation in June was also slower than the previous month's 3.9% print.
The central bank, which has kept interest rates steady at its last six meetings, has previously flagged a possible cut of 25 basis points at its August 15 meeting as its sees inflation easing in the second half when a rice import duty is slashed to 15% from 35%.
Remolona said the central bank will be careful in balancing supply and demand to ensure there is no unnecessary loss of output.
Speaking at the same forum, Finance Secretary Ralph Recto said he was confident this year's growth target of 6.0%-7.0% will be achieved, and a possible cut in rates should underpin that outlook.
Recto said he was sticking to his view that interest could be cut by 150 basis points in the next two years.
Remolona also said the peso'sweakness is mainly driven by a strong dollar, although it has been "somewhat stronger" compared with regional peers.
Reporting by Neil Jerome Morales; Editing by John Mair
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