The Monetary Board of the Bangko Sentral ng Pilipinas (BSP) kept the overnight borrowing rate steady at 6.5 percent amid the slowdown in inflation in October and the stronger gross domestic product expansion in the third quarter.
The BSP, however, remained hawkish, saying it might resume monetary policy tightening if needed to make sure inflation remains within the target range.
BSP Deputy Governor Francisco Dakila Jr., who read the statement of board chairman and BSP Governor Eli Remolona who is in the US for the Philippine Economic Briefing in San Francisco, said the interest rates on the overnight deposit and lending facilities were maintained at 6.0 percent and 7.0 percent, respectively.
“The latest projections indicate that the inflation outlook has moderated over the policy horizon. The risk-adjusted inflation forecasts remain above the target for 2024 at 4.4 percent [from 4.7 percent in the previous meeting in October] and within the target for 2025 at 3.4 percent [from 3.5 percent],” Dakila said.