BSP to keep rates steady at June meeting

The Bangko Sentral ng Pilipinas (BSP) is expected to keep interest rates steady at 2% during its June policy meeting.

Moody’s Analytics forecasts no changes from the BSP's Monetary Board due to the ongoing pandemic and economic recovery challenges.

Economists predict that the central bank will retain its current stance to support domestic activity and boost economic recovery, with inflation improving due to government initiatives.

The Philippine economy contracted by 9.5% last year but is expected to recover this year with a target growth rate of 6-7%.

Since the second quarter of 2020, when strict movement restrictions were in place, the economy has shown improvements, with GDP contracting by 4.3% in Q1 2021 compared to -8.3% in the previous quarter.