Philippine CB hopes 2012 growth goal will be met

The Philippine central bank is hopeful the government’s target of 5 to 6 per cent growth this year will be met and said on Wednesday it is ready to support that goal as long as the inflation outlook remains favourable. Most analysts expect the Bangko Sentral ng Pilipinas to hold the main interest rate at a record low of 4.0 per cent when it meets again in April after cutting it at the first two reviews of 2012. The latest data shows exports may be on the road to recovery and inflation is at its lowest in more than 2 years, figures that coincide with positive developments in the United States and Europe. “The positive export growth reported is welcome. As are the seeming traction in US recovery and the growing confidence in the resolution of the European debt (crisis),” Governor Amando Tetangco told Reuters in an email. “We remain hopeful for the government’s projected growth rate. The BSP stands ready to support economic growth, as the inflation outlook allows,” Tetangco said. Philippine officials have said the economy should surpass last year’s lower-than-expected growth of 3.7 per cent on the back of higher public spending, the central bank’s accommodative policy and improving global growth prospects.