Bangko Sentral Ng Pilipinas

Theme of the Day: Slowing Global Growth

March 21, 2019

Since the Federal Reserve’s policy decision and press conference yesterday, there’s been a parade of other central bank policy meetings. Although only Norway changed its policy rate — a hike no less — the running theme in the many central bank statements is that the slowdown in global demand late last year is continuing and […] More

Many Central Bank Meetings and a Stunning Deceleration of U.S. Import Price Inflation

December 13, 2018

The dollar shows no net overnight change against the Swiss franc, Chinese yuan, New Zealand dollar, or Canadian dollar. The greenback rose 0.8% versus the Mexican peso, 0.4% relative to the yen, and 0.1% versus the euro while dipping 0.1% vis-a-vis the Australian dollar and sterling. Asian equities rallied, but share prices in Europe and […] More

A Fifth Straight Filipino Central Bank Interest Rate Hike

November 15, 2018

A desire to counter perceived upside inflation risks such as┬áthe rice tariffication bill, the suspension of the oil excise tax, wage pressures, and elevated inflation expectations justified a further hike of Bangko Sentral ng Pilipinas’ overnight reverse repo rate to 4.75% from 4.5%, according to a released central bank statement. Officials also felt obliged to […] More

Filipino Monetary Response Escalated Amid Rising Inflation

August 9, 2018

A May central bank rate hike in May — the first hike of the overnight reverse repo rate since 2014 — was followed one month later by a second tightening. Both increases were 25 basis points in size, which these days is the most frequent incremental change favored by central bankers. But after meeting this […] More

Declines in Kiwi, Ruble and Turkish Lira

August 9, 2018

The dollar advanced overnight by 1.6% against the New Zealand dollar, 0.9% versus the Russian ruble, and some 2.5% vis-a-vis the Turkish lira. Not only did the latest review of New Zealand monetary policy end with leaving the Official Cash Rate at 1.75%, half its level prior to the June 2015 first of 7 reductions, […] More

Bangko Sentral ng Pilipinas

May 10, 2018

Among today’s many central bank reviews of monetary policy, the one in The Philippines proved to be the meeting that resulted in an actual change in policy rates, as the overnight reverse repo, the overnight lending, and the overnight deposit rates were raised by 25 basis to 3.25%, 3.75%, and 2.75%. A new forecast unveiled […] More

Bangko Sentral ng Pilipinas

March 22, 2018

Filipino officials didn’t tighten their monetary stance at the latest review but left the door open to such a move in the future. The overnight reverse repo rate and lending rate have been at 3.0% and 4.0% for some time. In mid-2016, officials switched from a point target to a 3-4% target range. A released […] More

Bangko Sentral ng Pilipinas

February 8, 2018

The Filipino overnight reserve repo rate was left at 3.0%. It’s been at that level since early June 2016 when the central bank monetary board abandoned a point target of 4% and adopted a 3-4% target corridor. The ceiling is imposed by the overnight lending rate. A statement of explanation for today’s action revises projected […] More

Bangko Sentral ng Pilipinas

December 14, 2017

There has been a Filipino central bank rate of 3.0% since a pair of 25-basis point cuts in the third quarter of 2014, and monetary officials still see no need to change that level. A statement after the Monetary Board met concluded that the inflationary environment is broadly unchanged since the previous review, predicted in […] More

Bangko Sentral ng Pilipinas

November 9, 2017

The Filipino reverse repo rate has been at 3.0% since a pair of 25-basis point hikes in July and September of 2014. A statement released by the Monetary Board after the last review considers 3.0% to still be an appropriate level even though risks to the inflation output lie a tad to the upside. Inflation […] More