Bangko Sentral ng Pilipinas

February 8, 2018

The Filipino overnight reserve repo rate was left at 3.0%. It’s been at that level since early June 2016 when the central bank monetary board abandoned a point target of 4% and adopted a 3-4% target corridor. The ceiling is imposed by the overnight lending rate. A statement of explanation for today’s action revises projected inflation in 2018 a bit upward, noting robust domestic demand, but assumes that inflation will settle back into the 2-4% CPI target next year. While inflation risks are skewed to the upside, expected inflation is well-anchored. The statement ends with a pledge to take appropriate action if inflation stays too high. “The Monetary Board stands ready to take appropriate measures as necessary to ensure that the monetary policy stance continues to support price and financial stability.”

Copyright 2018, Larry Greenberg. All rights reserved. No secondary distribution without expressed permission.



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