Filipino Interest Rates Left Unchanged

October 24, 2013

The overnight lending and borrowing rates were last changed a year ago.  Officials at Bangko Sentral ng Pilipinas implemented cuts of 25 basis points each in January, April, July and October 2012.  The lending and borrowing rate levels will remain at 5.5% and 3.5%, respectively, officials announced after today’s policy meeting had concluded.  A statement released expressed satisfaction with price and growth trends.

The Monetary Board’s decision is based on its assessment of a benign inflation environment. Latest baseline forecasts indicate that the future inflation path remains in line with the target range of 4.0±1.0 percent in 2013-2014 and 3.0±1.0 percent for 2015. Inflation expectations also continue to be firmly anchored. The Monetary Board noted that while global economic conditions remain challenging, prospects for domestic activity remain robust, supported by buoyant domestic demand and favorable consumer and business sentiment.

Copyright 2013, Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.

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