Philippines to keep policy stance despite capital flight

MANILA, June 26 (Xinhua) -- The Philippine central bank said Wednesday it will keep its current policy stance despite the flight of capital from the financial markets.

Central Bank Governor Amando Tetangco Jr. said there's no need to "deviate from our recent policy stance."

"Monetary policy will continue to be conducted in consideration of the inflation outlook which in our current assessment is benign, " Tetangco said in an interview with reporters.

He added that inflation will remain manageable until 2015, albeit a weaker peso and oil price hikes.

Tetangco said the recent weakness of the peso has "marginal" effect on inflation. The peso has slumped against the U.S. dollar by more than 6 percent this year.

He said the recent round of oil price increases was expected and have been "incorporated" in the inflation forecasts.

Philippine inflation averaged 3 percent in the first five months, falling at the low-end of the central bank's 3 percent to 5 percent target range. That target is carried over to 2014, while for 2015, the goal was set between 2 percent to 4 percent.

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