BSP Keeps Interest Rates Steady At 6.5%

The Bangko Sentral ng Pilipinas’ (BSP) benchmark rate remained at 6.5 percent after the Monetary Board decided to keep it unchanged because its last off-cycle move was still sufficiently tight amid persistent upside risks to inflation.

BSP Deputy Governor Francisco G. Dakila Jr. said that the latest projections “indicate that the inflation outlook has moderated over the policy horizon. I Photo: MGM Wikimedia Commons

BSP Deputy Governor Francisco G. Dakila Jr. said that despite higher risk-adjusted inflation forecasts versus the baseline forecasts, the latest projections “indicate that the inflation outlook has moderated over the policy horizon."

“Looking ahead, the Monetary Board continues to deem it necessary to keep monetary policy settings sufficiently tight until a sustained downtrend in inflation becomes fully evident and inflation expectations are firmly anchored,” said Dakila, reading the statement of BSP Governor Eli M. Remolona Jr., who is currently in the US for a Philippine Economic Briefing.

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