Eli Remolona Jr., the Governor of the Philippine central bank, stated that the central bank's primary concern at present is the El Nino phenomenon, noting that this climate event will influence monetary policy decisions.

Speaking at a business forum in Manila, Remolona said, "Right now the scenario we are most focused on is El Nino."

He added, "There is a regular El Nino, which is a mild El Nino, and that is already bad news. But there is also a strong El Nino, and that would be very bad news. So we have to consider both scenarios and set monetary policy accordingly."

Inflation expectations are currently moving toward the central bank's 3% target.