BSP maintains rates, hints at August easing

Bangko Sentral ng Pilipinas (BSP) maintained key interest rates but hinted at potential easing in August.

The Monetary Board kept the overnight reverse repurchase facility rate unchanged at 6.5%, along with deposit and lending facilities at 6% and 7% respectively.

Lower tariffs on imported rice through Executive Order No. 62 are expected to ease inflation, shifting balance of risks towards downside for 2024 and 2025.

Despite closer alignment with the target range of 2-4%, risks from food prices other than rice, transport charges, and electricity rates remain.

BSP Governor Eli Remolona Jr. signaled a rate cut is 'somewhat more likely' in August, potentially up to 50 basis points this year.