Central Bank of The Philippines

May 11, 2017

Officials at Bangko Sentral ng Pilipinas left all its interest rates unchanged including the key overnight reverse repo rate, which has been at 3.0% since 25-basis point hikes in July and September of 2014. A released statement projects in-target (2-4%) inflation in both 2017 and 2018, while conceding that higher administered prices and proposed tax reforms tilt risk to the upside. Prospects are good for domestic demand, and the global growth outlook looks more promising. However, external risks persist and could result in softer foreign demand than assumed in the baseline scenario.

The two rate hikes in 2014 reversed half the policy easing done in 2012.

Copyright 2017, Larry Greenberg. All rights reserved. No secondary distribution without express permission. 



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