Filipino Monetary Policy: Wait and See Approach

December 13, 2012

The Monetary Board at Bangko Sentral ng Pilipinas decided to keep its 3.5% reverse repo or overnight borrowing rate and its 5.5% repo rate unchanged, and officials called the current stance “appropriate.”  These rate levels were reached after four reductions of 25-basis point each most recently in late October but also in January, March and July of 2012.  Growth last quarter of marginally more than 7% reflected stronger domestic than foreign demand.  Inflation risks, according to a released statement, are broadly balanced and consistent with the central bank target of 3-5%. “Going forward, the BSP will continue to monitor evolving price and output conditions to ensure that the monetary policy stance remains consistent with ensuring stable prices while supporting economic growth.”  The first scheduled meeting of the Board in 2013 will be on January 24.

Copyright 2012, Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.

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