Central Bank of the Philippines Leaves Overnight Lending and Borrowing Rates at 5.5% and 3.5%

December 12, 2013

Trust but verify is the message of the latest interest rate policy statement from officials at Bangko Sentral ng Pilipinas.  Each of the past four rate changes was a cut of 25 basis points, and all four were administered in 2012.  The statement calls inflation “manageable” but concedes that price risks are skewed to the upside because of the potential for hikes in food prices and utility fees.  Indeed, inflation accelerated last month but at 3.3% remains within its 2014 targeted corridor of 2-4%. 

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



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