Filipino Central Bank Interest Rates Left Unchanged

September 24, 2015

The key rates have been 6.0% for the overnight lending rate and 4.0% for overnight borrowing since increases of 25 basis points each in July and September of last year.  Policy was not changed in 2013, but it was loosened four times in 2012.  A statement from officials at Bangko Sentral ng Pilipinas predicts that while inflation is now under the 2.4% target, it will “return gradually to a path consistent with the target for 2016-2017. Meanwhile, inflation expectations also remain anchored within the inflation target band over the policy horizon.”  Officials are watching some weather-related upside prices risks, but they also “considered the weakness in the global economy and the continuing uncertainty in the global financial markets.”  Like most emerging market monetary authorities, they are forced into a balancing act in these confusing times.

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



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