Philippine Central Bank Keeps Interest Rates Steady Amid Pandemic

The Bangko Sentral ng Pilipinas (BSP) kept interest rates steady at a record low of 2% on Thursday, maintaining the overnight deposit rate at 1.5% and the overnight lending rate at 2.5%. This decision was made to support economic recovery amid ongoing pandemic disruptions.

Despite an increase in inflation forecasts for 2021-2023 due to rising global commodity prices, a weaker peso, and downside risks from new virus variants, the BSP remains committed to providing monetary policy support until necessary.

BSP Governor Benjamin Diokno emphasized the importance of targeted fiscal and health interventions, particularly accelerating the vaccination program, in safeguarding public health and preventing further negative impacts on the economy.