Philippines central bank maintains target RRP rate at 6.5%
The decision comes amid slight upward revisions to inflation forecasts, with the risk-adjusted forecast for 2024 rising to 4.0%, up from 3.9%. However, the forecast for 2025 remains stable at 3.5%. The Council found that while inflation risks are rising, driven by factors such as higher transport and food costs, rising electricity prices and global oil prices, inflation expectations remain in check. control, the Council said in a statement.
The Bangko Sentral ng Pilipinas (BSP) has maintained its reverse repo rate at 6.50%, with deposit and overnight lending rates at 6.0% and 7.0%, respectively. Although the inflation forecast increases slightly in 2024 to 4.0%, the 2025 forecast remains at 3.5%. BSP will adjust policy if necessary to ensure price stability.
Despite these challenges, the Council noted that the domestic growth outlook appears positive, suggesting a resilient economy is adjusting to tighter financial conditions.
The BSP remains ready to adjust its monetary policy settings as needed, consistent with its primary mandate of protecting price stability, the release added.
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