Metro Manila (CNN Philippines, November 14) — The Monetary Board kept policy rates steady as inflation became more manageable.
In a statement delivered in a press briefing Thursday, Bangko Sentral ng Pilipinas (BSP) Deputy Governor Francisco Dakila said that interest rates will remain at 4.0 percent.
“At its meeting on monetary policy today, the Monetary Board decided to maintain the interest rate on the BSP’s overnight reverse repurchase (RRP) facility at 4.0 percent. Accordingly, the interest rates on the overnight deposit and lending facilities were held unchanged at 3.5 percent and 4.5 percent, respectively,” Dakila said.
The decision was anchored on the expectation that the 2020 national government budget will be passed within the year.
The Monetary Board, the monetary policy making arm of the BSP with key government officials, made this decision based on lower inflation rates for the year.
Based on the latest BSP forecast, inflation is expected to hit the 2-4 percent inflation target for 2019 until 2021.
However, the BSP warned against the possible impact of African Swine Fever on food prices and geopolitical tensions in the Middle East on oil prices.
