Filipino Monetary Policy

June 13, 2013

Officials at this year’s fourth interest rate policy meeting voted to leave the overnight borrowing and lending rates at 3.5% and 5.5%, respectively, and did not cut the Special Deposit Rate any further.  Such was sliced on January 24, March 13, and April 25 to the current 2.0% level, and policymakers are pausing to assess the impact of those actions.  The overnight rates have been at their present levels since a 25-basis point reduction last October, which followed earlier easings in July, April and January of 2012.  An inflation target of 3-5% is projected to be satisfied through the next 2-1/2 years, and growth continues to be decent.

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

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