BSP to maintain accommodative stance amid rising inflation

BSP Governor Benjamin Diokno said on Wednesday that discussions about an exit strategy from the accommodative monetary policy stance are premature as they depend on domestic growth and inflation.

Diokno noted that while inflation has risen above the government's target band, average rates for this year and next are expected to remain within the target range.

The BSP will continue providing unhampered services despite new pandemic restrictions, with alternative work arrangements in place until March 31.

BSP is formulating exit strategies with international counterparts to unwind the P2 trillion liquidity released during the pandemic without derailing recovery or causing overheating.

Moody's Analytics expects the BSP to keep key interest rates steady at 2% when its Monetary Board meets on Thursday.