Inflation in the Philippines is driven by supply-side factors, and does not warrant a monetary policy response, National Economic and Development Authority (NEDA) Secretary Arsenio M. Balisacan said on Wednesday.

“I think that the source of inflation is the supply side and not demand side that requires a monetary policy cure,” Mr. Balisacan told reporters.

Mr. Balisacan said he is hopeful of improving inflation numbers in the coming months, and that third-quarter economic growth was likely better versus a year ago as the government addresses underspending.

Mr. Balisacan, who is not a member of the central bank’s policymaking monetary board, earlier this month said raising interest rates further ” can hurt ” the economy and consumers.

The Philippine central bank is considering an off-cycle hike in its benchmark rate, as early as Thursday, before its regular rate-setting meeting on Nov. 16, to anchor inflation expectations. — Reuters