Philippine Central Bank Holds Interest Rates

Philippine Central Bank Holds Interest Rates

The Philippine Central Bank decided on Thursday to keep the key interest rate at a record low.

The monetary Board of the Bangko Sentral ng Pilipinas, ruled by Nestor Espenilla, held the overnight reverse repurchase facility at 3.0 per cent, in line with economists ‘ expectations.

The prices for the overnight credit and Deposit facilities and the minimum reserve ratios were not always stable.

Politicians said the future inflation path remained within the target range for 2017-2019.

The Board considered that the prevailing monetary policy settings continue to be appropriate.

Meanwhile, inflation expectations remain firmly the focus of the government of 2 per cent, anchored in the vicinity of 4 percentage points target over the policy horizon, the Central Bank said.

The Outlook for the domestic economy, the company remains supported by positive consumer and business sentiment and ample liquidity, the bank said.

With the economy remaining growing in a decent pace, and the outlook is positive, it is said there is little need for more supportive monetary policy, Capital Economics’ economist Alex Holmes.

The key rate is expected to be added unchanged at 3.0 per cent and in the entire year in 2017 and 2018, Holmes.