BSP to keep monetary policy steady despite weak inflation


Posted at Oct 23 2015 12:54 PM | Updated as of Oct 23 2015 08:54 PM

MANILA - The Bangko Sentral ng Pilipinas (BSP) stands pat on lowering interest rates even as inflation continued to decrease in the third quarter.

The BSP said inflation slowed to 0.6 percent in the July to September period due to the slower rise in most food products due to adequate supply.

Likewise, the decline in fuel and power rates also brought down overall inflation.

Despite that, the BSP said its current monetary policy stance remains appropriate as the prolonged El Nino and a pending power rate hike may boost inflation next year.

Some banks earlier said the BSP has enough room to lower interest rates by next year to help give the economy a needed boost. -- ANC