MANILA - The Bangko Sentral ng Pilipinas on Thursday kept key interest rates steady in line with analysts' expectations.
The Monetary Board has decided to keep the overnight reverse repurchase facility at the record low of 2 percent, BSP Gov. Benjamin Diokno said in a virtual briefing.
The interest rates on the overnight deposit and lending facilities were also kept at 1.5 percent and 2.5 percent, respectively, he said.
"The expected path of inflation and downside risks to domestic economic growth warrant keeping monetary policy settings unchanged," Diokno said.
At least 11 economists polled by Reuters expected the central bank to keep the benchmark interest rate unchanged for the fifth straight policy meetings.
Inflation has been steady at 4.5 percent for the third straight month in June, government data showed.
Average inflation for the year could settle at 4 percent or the upper end of the government's 2 to 4 percent target range, slightly higher than the earlier forecast of 3.9 percent, BSP Deputy Governor Francisco Dakila said.
The revision was due to the higher global crude oil prices as well as the global growth outlook, he said.
For 2022, the forecast was also revised upwards to 3 percent from 2.9 percent, Dakila said. Inflation could settle at 3 percent in 2023, he added.