Central Bank of The Philippines Keeps Policy Interest Rates Unchanged

February 12, 2015

The last two interest rate changes at Bangko Sentral ng Pilipinas, each a hike of 25 basis points, were done last July and September.  These were the first tightenings of policy since May 2011.  There had been four cuts in 2012 and no changes in 2013.  Since September, the overnight borrowing rate has been 4.0%, and the overnight lending rate has been at 6.0%.  A released statement after the latest Policy Board meeting called current settings “appropriate” and observed that “inflation pressures have moderated further since the previous monetary policy meeting, reflecting mainly the significant decline in international oil prices.”  Inflation expectations appear “firmly anchored” and a somewhat lower inflation path in the future is seen, albeit still within the 2-4% target range.  Growth continues to be solid.

Copyright 2015, Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.



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