Bangko Sentral keeps hands off policy rates

Monetary authorities saw no reason to tinker with any of the key inflation-targeting policy rates of the Bangko Sentral ng Pilipinas (BSP) during its meeting Thursday as forecasts showed the consumer price index staying within the 3 percent-5 percent band until 2013.   "The Monetary Board believes that, on balance, the prevailing monetary policy settings are appropriately calibrated to the outlook for inflation and domestic economic activity," the BSP said in a statement.   October inflation rose to 5.3 percent, up from 4.6 percent the month prior, while the third quarter gross domestic product was the third straight quarter of falling output.   The BSP said the Monetary Board “considers the risks surrounding the inflation outlook to remain tilted to the downside.”   In a huddle with reporters, BSP Deputy Gov. Diwa Guinigundo indicated just how tilted the outlook is. He said that based on their internal computations this year’s inflation will be 4.52 percent, 3.51 percent in 2012 and 3.12 in 2013.   The specific upside risk the BSP cited was “potential increases in liquidity due to sustained capital inflows.” — ELR/VS, GMA News