Philippines’ Central Bank Rates Unchanged
August 26, 2010
The overnight borrowing rate of Bangko Sentral ng Pilipinas will remain at 4.0% as analysts expected. A fairly sanguine statement released today by officials called monetary policy settings, which were last changed in July 2009, appropriate because of contained inflation and anchored inflation expectations. The CPI is expected to stay confined to its target ranges of 3.5-5.5% this year and 3-5% in 2011 and 2012. There are some upside price risks such as stronger than expected economic growth in the first half of 2010 that could continue, and these are being monitored. Real GDP posted on-year rises of 7.8% in 1Q10 and 7.9% in 2Q10.
Over a seven-month period during the world recession, the overnight borrowing rate was sliced six times in all from a peak of 6%, beginning with cuts of 50 basis points each in December 2008 and January 2009 and followed by four reductions of 25 bps implemented in March, April, May and July of 2009.
Copyright Larry Greenberg 2010. All rights reserved. No secondary distribution without express permission.
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