BSP keeps key rates unchanged

The Bangko Sentral ng Pilipinas kept its policy rates unchanged anew on Thursday, as the inflation environment remains manageable.

During its policy meeting, the Monetary Board (MB) retained the overnight lending rate at 3.5 percent, the overnight borrowing rate at 3.0 percent, and the overnight deposit rate at 2.5 percent.

The reserve requirement ratio—said to be among the highest in Asia and the world— was likewise left unchanged at 20 percent.

"The Monetary Board's decision is based on its assessment that the inflation environment remains manageable," Espenilla said in a briefing at the BSP headquarters in Manila City.

At the same briefing, Deputy Governor Diwa Guinigundo said the Monetary Board decided to keep its inflation forecast at 3.2 percent for 2017 and 2019.

However, it raised its 2018 inflation forecast to 3.4 percent due to four reasons:

• Higher crude oil prices
• Increase in domestic liquidity
• Depreciation of the peso
• Higher-than-expected inflation rates in September and October

"The BSP will continue to monitor price and output developments for any risks to the inflation outlook and will adjust its policy settings as necessary to ensure stable prices and sustainable economic growth," Espenilla said. — VDS, GMA News