The Philippines: BSP keeps rate at record low

  • The Philippine central bank left key interest rates steady as it continued to support an economy grappling with the fallout of recent COVID-19 curbs, even as it increased its inflation forecasts for 2021-2023.
  • The (BSP) kept the rate on the overnight reverse repurchase facility at 2.0%
  • The rates on the overnight deposit and lending facilities were kept at 1.5% and 2.5%, respectively.
  • “The outlook for recovery continues to hinge on timely measures to prevent deeper negative effects on the Philippine economy,” BSP Governor Benjamin Diokno said in a media briefing.
  • He said current policy settings remained appropriate, with inflation pressures still manageable and the growth outlook uncertain.
  • “Together with appropriate fiscal and health interventions, keeping a steady hand on the BSP’s policy levers will allow the momentum of economic recovery to gain more traction by helping boost domestic demand and market confidence,” Diokno said.

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