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RP consumer prices rose 2.2% in April - DBS


Singapore-based DBS Bank Ltd. on Monday said it expects Philippine inflation in April to have remained at a seven-year low of 2.2 percent due to a slight decline in food prices. Philippine consumer prices rose 2.2 percent in March. The National Statistics Office is set to release the April data on Friday. In a note to clients, DBS said that despite the country’s steadily decreasing inflation, it does not expect the Bangko Sentral ng Pilipinas to cut interest rates as domestic money supply remains an inflationary concern. “The BSP continues to have no room for further rate cuts, as strong remittance flows keep money supply growth at over 20 percent year-on-year," DBS said. The BSP, for its part, expects consumer prices to have risen between 2-2.7 percent in April. “That said, neither do we currently expect the central bank to deliver interest rate hikes, with direct measures like the expansion of deposit facilities having been introduced only some two weeks back," it added. During its latest policy meeting the local central bank introduced tools that would lure government deposits away from banks, and in effect out of the system. However, these tools will only start to take effect on May 10. At this meeting, the BSP also kept interest rates unchanged at 7.5 percent for overnight borrowing and 9.75 percent for overnight lending, and maintained the tiering system for bank deposits - GMANews.TV

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