BSP: No reason to lower policy rates

The Bangko Sentral ng Pilipinas (BSP) sees no "compelling reason" to tweak policy rates in the near term, a ranking official said Friday.

 

"We don’t need to reduce the policy rate at this point because the economy is growing and inflation is right within the target of 2 to 4 percent," BSP deputy governor Diwa Guinigundo told reporters after the two-day Financial and Central Bank Deputies' Meeting in Tagaytay City.

"In other words, there is no compelling reason why we should change our monetary policy stance. It remains appropriate," he said.

 

Inflation in February inched higher to 2.5 percent from 2.4 percent a month earlier and 4.1 percent a year earlier, the Philippine Statistics Authority reported early Thursday.

 

Guinigundo noted that the latest inflation is still below the mid-point of the target for this year. 

 

The two-month average of 2.4 percent is also within the full-year inflation target of 2 to 4 percent this year set by the Development Budget Coordinating Committee (DBCC).

 

While policy rates are still at appropriate levels, BSP governor Amando Tetangco Jr. on Thursday said the central bank will remain watchful of global developments that could influence prices.

 

In its meeting last February 12, the Monetary Board, the BSP's policy setting body, has kept the rates steady since October 2014 when monetary policy was last tweaked by a 25 basis point increase.

 

The Monetary Board will have its next policy meeting on March 26. — RSJ, GMA News