MANILA, April 8 (Reuters) - The Philippine central bank kept its benchmark rate steady at 6.50% for a fourth straight meeting on Monday and signalled that interest rate cuts would start later rather than at an earlier stage due to upside risks to inflation.
Bangko Sentral ng Pilipinas Goveror Eli Remolona told a press briefing upside risks to inflation, driven mainly by an increase in rice prices have "become worse" making policymakers "somewhat hawkish than before."
"We're not gonna do it (cut rates) by the third quarter. We may do it down the road", the governor said, emphasising that the central bank is contemplating easing policy and not tightening any further.
Taking into account last month's acceleration in annual inflation to 3.7%, the central bank raised its risk-adjusted consumer price forecast to 4.0% for 2024 from 3.9% previously, but kept next year's at 3.5%
Rice inflation jumped to its fastest pace in 15 years in March, accounting for nearly half of the price uptick for the month.
The central bank, which next meets on May 16, has raised rates by 450 basis points since May 2022, including in an off-cycle hike in October. (Reporting by Mikhail Flores and Neil Jerome Morales; Editing by Kanupriya Kapoor and Shri Navaratnam)
