Monetary authorities on Thursday kept key interest rates unchanged as well as inflation forecasts for this year.
Central bank Governor Amando Tetangco said the policy-making Monetary Board’s decision was based on an assessment of inflation dynamics and risks to the outlook over the policy horizon.
The Bangko Sentral ng Pilipinas’ overnight borrowing and lending rates were kept at 4 percent and 6 percent, respectively. The special deposit account (SDA) rate was also held steady at 2.5 percent, while the reserve requirement ratio for banks still stands at 20 percent.
“Latest baseline forecasts indicate that inflation would settle below the target range of 3 percent plus or minus 1 percentage point for 2015,” Tetangco told reporters following Thursday’s rate-setting meeting.
The central bank has also retained its 2015 inflation forecast to 1.4 percent. Mayvellin Caraballo