The Monetary Board of the Bangko Sentral ng Pilipinas (BSP) decided to pause its tightening cycle, keeping the existing rates for overnight borrowing and lending, as well as the special deposit account (SDA) and the reserve requirement ratio (RRR) for banks steady.
“The Monetary Board’s decision is based on its assessment of a more manageable inflation environment, based on the latest baseline projections indicating within-target inflation for the policy horizon,” BSP Governor Amando Tetangco Jr. said in an announcement right after the Monetary Board meeting on Thursday.
The rate for the overnight borrowing, or reverse repurchase (RRP) facility, stays at 4.0 percent and the rate for overnight lending, or repurchase facility remains at 6.0 percent, it said.
The interest rate for SDA was also left unchanged at 2.50 percent, as well as 20-percent RRR for banks.
MAYVELIN U. CARABALLO