No Changes in Filipino Central Bank Rates

July 25, 2013

The Monetary Board of Bangko Sentral ng Pilipinas released a statement after this year’s fifth scheduled interest rate policy meeting that concludes, “that prevailing monetary policy settings remain appropriate. The manageable inflation outlook and strong domestic growth support keeping policy settings steady given renewed market volatility.”

The overnight lending repo rate and overnight borrowing reverse repo rates have been 5.5% and 3.5% since cuts of 25 basis points in October 2012.  They had also been similarly cut in January, April, and July of 2012.  Three reductions this year have occurred in the Special Deposit Rate.  Each cut was by 50 bps, and they occurred in January, March and April.

Today’s statement, which also left reserve requirements unchanged, speaks of benign inflation, anchored expected inflation and robust growth powered by domestic demand.  Inflation risks are broadly balanced.

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



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