Philippines' gross foreign reserves decrease to US$101.51bil at end-April

MANILA, May 5 (Reuters): The Philippines' gross international reserves fell slightly to US$101.51 billion at the end of April, from US$101.55 billion a month earlier, the central bank has announced citing preliminary data.

The latest forex reserves represent a more than adequate external liquidity buffer equivalent to 7.6 months of imports of goods and payments of services and primary income, the central bank said in a statement.

The Philippines' central bank had also announced that the deceleration of inflation gives it flexibility on monetary policy.

The central bank remains vigilant against potential risks to the inflation outlook, and will undertake follow-through actions as necessary to anchor inflation expectations, it said, ahead of its May 18 rate-setting meeting.

The Philippine central bank also said on Friday it remains committed to adjusting its monetary policy stance as necessary to prevent further broadening of price pressures.

The balance of risks to inflation outlook for 2023 and 2024 remains tilted heavily towards the upside, it said, adding that potential effect of ongoing supply shortages continues to pose an upside risk to the outlook.

Philippine annual inflation was 6.6% in April, slower than the 7.6% increase in March, the statistics agency said on Friday.

Economists in a Reuters poll had forecast annual headline inflation of 7.0%, while the central bank had a 6.3% to 7.1% projection. - Reuters