BSP likely to hold rates if inflation proves short-lived

MANILA: The Bangko Sentral ng Pilipinas (BSP) may be able to keep interest rates steady rather than resort to defensive tightening if the global energy crunch caused by the Middle East conflict pushes domestic inflation above target only briefly.

In a report, economists at Nomura Global Markets Research said price pressures could exceed the central bank’s 2% to 4% goal, reflecting the Philippines’ heavy reliance on imported oil.