MANILA, Philippines – The Bangko Sentral ng Pilipinas (BSP) kept its benchmark interest rate unchanged after an off-cycle hike three weeks ago, following favorable slowdown of inflation.

In a rate-setting meeting on Thursday, November 16, the BSP Monetary Board decided to keep the key policy rate at 6.5% after inflation slowed down to 4.9% in October. Year-to-date, inflation is at 6.1%, still far from the 2 to 4% target.

Meanwhile, the Philippine economy performed better than expected, growing at 5.3% in the third quarter on the back of net exports and a recovery of government spending due partly to the barangay elections. Ordinary Filipinos, however, are feeling the pinch of inflation, as household consumption slumped.

Expert Speaks

[In This Economy] Something’s broken, and it’s hidden by ‘high’ economic growth

BSP Deputy Governor Francisco Dakila Jr., reading the central bank’s statement, said the pause was decided on to let the previous hikes work their way to the economy.

The central bank said it will keep monetary policy tight until a sustained downtrend is fully evident and inflation is firmly anchored. – Rappler.com

ALSO ON RAPPLER

• WATCH: Marcos delivers speech in Singapore via hologram while in US
• Marcos’ Maharlika chief qualified for post only after revised appointment rules
• Short selling is finally available. Will it bring excitement to PSE?
• Still removing shoes at NAIA for airport security checks? Here’s why.