BSP likely to keep benchmark rate unchanged in near-term: official | ABS-CBN
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BSP likely to keep benchmark rate unchanged in near-term: official
BSP likely to keep benchmark rate unchanged in near-term: official
Lady Vicencio,
ABS-CBN News
Published Sep 13, 2023 09:16 AM PHT
|
Updated Sep 13, 2023 09:55 AM PHT
MANILA -- The Bangko Sentral ng Pilipinas (BSP) is likely to keep the benchmark interest rate unchanged in the near term, an official said on Tuesday.
MANILA -- The Bangko Sentral ng Pilipinas (BSP) is likely to keep the benchmark interest rate unchanged in the near term, an official said on Tuesday.
During the Philippine Economic Briefing in Dubai, BSP Deputy Governor Francisco Dakila Jr. said BSP Governor Eli Remolona wants inflation to be within the government’s target range of 2 to 4 percent before changing the central bank’s policy rate.
During the Philippine Economic Briefing in Dubai, BSP Deputy Governor Francisco Dakila Jr. said BSP Governor Eli Remolona wants inflation to be within the government’s target range of 2 to 4 percent before changing the central bank’s policy rate.
Philippine headline inflation accelerated to 5.3 percent in August after slowing for six consecutive months.
Philippine headline inflation accelerated to 5.3 percent in August after slowing for six consecutive months.
“The Monetary Board has kept the policy interest rate unchanged for several meetings now. And the governor has given forward guidance that we would like to see inflation go back at least to within target before any change in the monetary policy stance is contemplated," Dakila said.
“The Monetary Board has kept the policy interest rate unchanged for several meetings now. And the governor has given forward guidance that we would like to see inflation go back at least to within target before any change in the monetary policy stance is contemplated," Dakila said.
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"And that's also because of the need to safeguard inflation expectations which has been anchored to the inflation target. Expectations coming from our survey respondents indicate that inflation would go back to within target starting next year,” he added.
"And that's also because of the need to safeguard inflation expectations which has been anchored to the inflation target. Expectations coming from our survey respondents indicate that inflation would go back to within target starting next year,” he added.
Economic managers still expect inflation to hit its target range of 2 to 4 percent by the fourth quarter of 2023.
Economic managers still expect inflation to hit its target range of 2 to 4 percent by the fourth quarter of 2023.
Despite the optimistic projections, Dakila noted that risks to inflation, including upticks in food and transport inflation, persists for this year and the next.
Despite the optimistic projections, Dakila noted that risks to inflation, including upticks in food and transport inflation, persists for this year and the next.
“The BSP’s previous monetary tightening is still working its way through the economy, and the Board has seen it prudent to keep a steady hand on our monetary policy levers," he said.
“The BSP’s previous monetary tightening is still working its way through the economy, and the Board has seen it prudent to keep a steady hand on our monetary policy levers," he said.
"While the downward trajectory of headline inflation reaffirms our assessment that inflation would revert towards the target range by yearend in the absence of supply shocks, upside risks continue to lean towards the upside over the near term."
"While the downward trajectory of headline inflation reaffirms our assessment that inflation would revert towards the target range by yearend in the absence of supply shocks, upside risks continue to lean towards the upside over the near term."
"Hence the case for vigilance remains,” Dakila explained.
"Hence the case for vigilance remains,” Dakila explained.
The BSP has kept its interest policy rate unchanged at 6.25 percent for the past three meetings.
The BSP has kept its interest policy rate unchanged at 6.25 percent for the past three meetings.
The Monetary Board is set to convene on September 21.
The Monetary Board is set to convene on September 21.
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