Philippines inflation continues to decline, growth above trend

MANILA - The deceleration in Philippine inflation (core inflation has fallen to a record low of 1.9% year-on-year) has continued, despite growth remaining at or slightly above trend. But while both headline and core inflation continue to moderate, Philippine GDP growth remains strong at 7.5% on-year. ANZ Bank says it stands by its call for monetary policy to remain on hold through 2013, while pencilling in a 25bps rate hike in the second half of 2014, because it believes potential growth may, in fact, be higher than the current level. www.live.anz.com (ATI).