BENGALURU, June 11 Reuters The Philippine central bank is sticking with its view that interest rates could be lowered as early as August despite an uptick in inflation last month, saying it was happy with where consumer prices were going.

Speaking in the Reuters Global Markets Forum, Bangko Sentral ng Pilipinas Governor BSP Eli Remolona said there was chance the central bank could ease monetary policy in the third quarter, but it would remain datadependent.

We are happy where inflation is going but we understand there are risks. We are guarding against those risks, Remolona said, citing supply shocks that could stem from the geopolitical tensions.

The BSP39;s key policy rate is at a 17year high of 6.50 after a series of rate hikes last year to tame inflation which has come down from a 14year peak of 8.7 in January last year.

We39;re hawkish but less so than before. So we39;re still tight in terms of monetary policy, Remolona said.

A rate cut in the third quarter would likely put the BSP ahead of major central banks including the Federal Reserve which is expected to deliver its first rate cut later this year.

Strong U.S. jobs data have prompted investors to push back bets of rate cuts by the Fed this year, exerting pressure on Asian currencies including the Philippine peso.

Our bigger concern is inflation, and growth, number two. The peso becomes a concern only if it moves in a very sharp way so that it begins to cause a passthrough effect on inflation,…