BSP not ruling out tighter money policy

The Philippine central bank (BSP) said it would not rule out a "possible tightening" of its monetary policy after August inflation figures showed the rate rose faster than expected.

Inflation reached 7.2 percent last month, which breached the BSP's forecast range of 6.6-7.1 percent. The July figure was 7.1 percent.

BSP governor Amando Tetangco said that along with increasing liquidity and the narrowing interest rate differential between the Philippines and US, the higher than expected inflation