Philippine c.bank reiterates will remain accommodative

MANILA, Sept 2 - The Philippine central bank reiterated on Wednesday that monetary policy would remain "appropriately accommodative" but it would continue to be wary of any uptick in inflation.

"We can see that there are upside risks in 2010, particularly upside risks coming from the possible increase in commodity prices beyond expectations," deputy governor Diwa Guinigundo told members of Congress in a presentation.

However, inflation expectations were seen to be well-anchored at present, he added.

Last month, the central bank ended an eight-month easing cycle and kept the key overnight borrowing rate on hold at a record low 4.0 percent. Analysts say this rate is likely to be maintained until the end of the year.

The central bank said after last week's stronger-than-expected second quarter economic growth data that its decision to pause in the series of rate cuts was correct and on Tuesday Governor Amando Tetangco said on any possible shift in policy would be gradual.