Bangko Sentral eyes taking time off from policy tweaks if inflation slows down

The Bangko Sentral ng Pilipinas (BSP) on Tuesday hinted at taking a pause in adjusting monetary policy if inflation proves to be slowing down.

Monetary Board (MB) member Felipe Medalla said the BSP could take time off from raising policy rates.

“If there are signs that inflation is already abating, as measured by the month-on-month, we may take a pause, but that’s too early to tell at this point,” he said in a press conference in Manila City.

The policy-setting body of the Bangko Sentral has raised interest rates four consecutive times since May as inflation remained worrisome.

It hiked key policy rates by a cumulative total of 150 basis points that brought the overnight borrowing rate to 4.50 percent, the overnight lending rate to 5.00 percent, and the overnight deposit rate to 4.00 percent.

“We have to see the data on what to do in the next policy meeting,” Medalla said.

The BSP is scheduled to have another policy meeting on November 15 to tackle whether or not a fifth rate hike is warranted by inflationary concerns. —VDS, GMA News