BSP keeps rates steady at 4%

MANILA, Philippines – The Bangko Sentral ng Pilipinas (BSP) has decided to keep its key policy rates steady, citing manageable inflation.

In its policy meeting on Thursday, June 14, the Monetary Board of the central bank left the overnight borrowing rate unchanged at 4%, and the overnight lending rate at 6%.

“The Monetary Board’s decision is based on its assessment that the inflation environment remains manageable. Latest baseline forecasts continue to track the lower half of the 3% to 5% target range for 2012 and 2013 while inflation expectations remain firmly anchored,” BSP Governor Amando Tetangco Jr said.

“The reserve requirement ratios were kept steady as well,” the central bank wrote.

It said core inflation remains firm despite the following:

• oil prices showing “considerable volatility”  
• petitions for electricity rate adjustments “could provide an upside influence on inflation”
• weak global economy can contribute to moderate oil and commodity prices

The monetary officials has cut the policy rates by a cumulative 50 basis points since the start of the year. – Rappler.com