Bangko Sentral to keep interest rates unchanged–Barclays Capital

The Bangko Sentral ng Pilipinas (BSP) is likely to keep its policy rates unchanged at record lows come Thursday when its Monetary Board meets on policy matters, investment bank Barclays Capital said in a report.   The central bank’s Monetary Board would keep the overnight borrowing rate at a record low of 4 percent and the overnight lending rate at 6 percent during the policy-rate setting meeting on April 19, Barclays Capital said in its latest Emerging Markets Research.   “We expect the central bank to keep the policy rate unchanged given manageable inflation,” the investment bank said.   Inflation eased to 2.6 percent in March from 2.7 percent in February, with the average inflation at 3.1 percent in the first quarter of the year, according to the National Statistics Office (NSO).   “We maintain our view that BSP has supported growth by cutting rates 50 basis points and has now passed the baton to the government in terms of supporting growth,” Barclays Capital said.   The BSP has set an inflation target of 3 percent to 5 percent this year. —VS, GMA News