The Philippine Central Bank Has a Dilemma

Philippine central bank Governor Nestor Espenilla said it’s getting harder to cut the reserve requirement ratio for lenders as he’d pledged to do when he took office six months ago, with inflation set to pick up.

“We have to be careful that we don’t send the signal that we are lowering the guard in terms of fighting inflation and keeping to our targets,” Espenilla, 59, said in an interview at his office in Manila on Tuesday.