Manila Bulletin
BSP keeps policy rate unchanged
The Bangko Sentral ng Pilipinas (BSP) decided to maintain its record-low policy rates, citing a projected decrease in inflation within the target range for the year.
The Monetary Board kept the overnight reverse repurchase (RRP) facility at 2.00%, the overnight deposit at 1.5%, and the overnight lending facility at 2.5%.
BSP Governor Benjamin Diokno stated that inflation is now anticipated to average near the upper end of the target band in 2021 due to easing food commodity price pressures, improved weather conditions, and government interventions.
The central bank's revised inflation forecast for 2021 is now 3.9%, down from the earlier projection of 4.2%.
Inflation is expected to remain high for the first three quarters before settling within the 2% to 4% target in the final three months of the year.
The inflation forecast for 2022 is seen to remain near the mid-point of the target but has increased slightly owing in part to rising international crude oil prices.
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The Bangko Sentral ng Pilipinas (BSP) has kept its key interest rate at 2 percent, with the Monetary Board maintaining the overnight borrowing rate at this level, along with the overnight deposit and lending facilities at 1.5 percent and 2.5 percent, respectively.
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Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno stated that inflation expectations remain anchored to the 2-4% target, despite inflation exceeding 4% since January.
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The Bangko Sentral ng Pilipinas (BSP) has maintained its key policy rate at a record low of 2 percent to bolster the country's economic recovery amidst a surge in COVID-19 cases.
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Inflation in the Philippines remained stable at 4.5% in April, matching the March rate and exceeding the Bangko Sentral ng Pilipinas' target range of 2% to 4%.
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