THE Monetary Board of the Bangko Sentral ng Pilipinas held its key policy rates steady at its meeting on Wednesday, BSP Governor Amando Tetangco Jr. said in a statement.
Citing confidence in forecasts showing inflation remaining within the central bank’s 2-percent to 4-percent target band through 2016 and 2017, the Monetary Board kept the rate of 4.0 percent for the overnight borrowing or reverse repurchase (RRP) facility, and 6.0 percent for the overnight lending or repurchase (RP) facility. The interest rate on special deposit accounts was likewise kept at 2.5 percent, and the reserve requirement ratio was held at 20 percent.
The Monetary Board last raised policy rates at its September 11, 2014 meeting.
Despite its overall benign outlook, “the Monetary Board affirmed the need to keep a watchful eye over domestic and external developments to ensure that the monetary policy stance remains in line with the BSP’s price and financial stability objectives,” Tetangco concluded.