“The biggest source of uncertainty now is how big Fed (US Federal Reserve) hikes will be and how many,” he told Bloomberg Television’s David Ingles and Yvonne Man today. “We’ll not match them point per point, but if large, we have to react.”

Bangko Sentral ng Pilipinas (BSP) has “more or less succeeded in anchoring inflation expectations” following a total 175-basis-point rate increase this year, Medalla said in the interview.

In separate remarks with CNBC also today, the governor said future interest rate increases would neither be half point nor 75 basis points as monetary officials have “done enough”.

That BSP isn’t done tightening echoes similar comments by Medalla’s peers in the UK, Australia, South Korea and India, as Fed officials have said they are far from controlling inflation.

Yesterday, the governor said that policy makers have scope to raise borrowing costs further after delivering a half-point hike to rein in inflation that’s drifted above the BSP’s 2% to 4% target for four out of seven months.

The peso, among the worst-performers in the region this month, was down as much as 0.3% per dollar today, set for a sixth day of declines.

The Philippines has raised rates by 175 basis points so far this year.

BSP will postpone an earlier plan to further reduce banks’ reserve requirement ratio by the end of the year, Medalla told Bloomberg Television. “We don’t want to confuse the market.”