Bangko Sentral ng Pilipinas

February 11, 2016

Filipino monetary policy settings were not changed at the latest Board meeting.  Interest rates, currently at 4.0% on overnight borrowings from the central bank and 6% on overnight loans, were not changed in either 2015 or 2013, but there were four cuts in 2012 and two hikes of 25 basis points each in July and September of 2014.  The statement released today also said reserve requirements were not modified.  Officials express confidence in the continuing firmness of domestic demand, stability of expected inflation, and likelihood of inflation staying within the 2-4% target in 2016 and 2017.  But note was also made that risks surrounding the inflation baseline forecast had become somewhat skewed to the downside and warned that “uncertainty over economic growth prospects across the globe could continue to drive volatility in global financial markets.”

Copyright 2016, Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.



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