'Godzilla El Niño' is complicating Philippine inflation forecasts

BANGKOK — The Philippine central bank is planning for a "Godzilla" El Niño on top of a prolonged oil shock, as the Southeast Asian nation tries to rein in inflation from three-year highs.

Governor Eli Remolona said Bangko Sentral ng Pilipinas now sets policy using scenarios that factor in oil prices and the severity of the weather event. "We have the regular, ordinary El Niño, which is bad, and then we have the Godzilla El Niño, which is really, really bad," he said Wednesday on a panel at the IMF and World Bank annual meetings in Bangkok.

The worst of El Niño's impact on prices is still to come, with the effects expected from November through February, he said, adding that maintaining price stability remains the central bank's priority.

"We're holding our breath," he said, "but we have to be prepared for the worst."