Filipino Special Deposit Account Rate Cut
March 14, 2013
Officials at Bankgo Sentral ng Pilipinas reduced the main overnight deposit rate, a.k.a. the reverse repo, by 25 basis points each in January, March, July and October of 2012 to its current level of 3.5%. It’s remained at 3.5% ever since including after today’s policy meeting. The overnight repo rate of 5.5% was also retained. However, officials cut the Special Deposit Account rate to 2.5% from 3.0%. A statement accompanying the decision characterizes such as fine tuning to help contain upward pressure on the peso. GDP growth of 6.8% in the year to 4Q12 ranks among Asia’s top performers, and inflation of 3.4% in the year to February lies in the lower half of the 3-5% target range. Inflation is considered manageable.
Copyright 2013, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Filipino monetary policy
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