Espenilla: BSP to decide on rates under 'fairly complex' setting

ABS-CBN News

Posted at Jun 13 2018 11:08 AM | Updated as of Jun 13 2018 11:10 AM

Bangko Sentral ng Pilipinas Governor Nestor Espenilla is shown at one of the ASEAN meetings in Manila. November 14, 2017. Jonathan Cellona, ABS-CBN News

MANILA - The Bangko Sentral ng Pilipinas is faced with a "fairly complex environment" when it decides on interest rates next week, Governor Nestor Espenilla said Wednesday.

Monetary authorities will look closely into "all potential drivers of future inflation as affected by global developments, expectations formation, and uncertainty," Espenilla said in a statement.

The Monetary Board under Espenilla raised the benchmark borrowing rate by 25 basis points at its last meeting on May 10, the first increase in nearly 4 years after inflation reached a 5-year peak in April.

"It’s a fairly complex environment that we need to navigate," he said.

Inflation and economic activity "are not the only consideration," Espenilla said, adding the MB was faced with a "very rich and broad range of information."

The US Federal Reserve is expected to raise rates for the second time this year on Wednesday (early Thursday in Manila), with investors looking for cues on whether 1 or 2 more increases are forthcoming before the year ends.

The European Central Bank will also meet this week and is expected to take its cue from the Fed.