Monetary Board keeps policy rates

June 22, 2017

The Monetary Board kept its policy rates steady on Thursday, a few weeks before the retirement of central bank governor Amando Tetangco Jr. In a statement, the Monetary Board it is keeping the reverse repurchase rate at 3 percent. Overnight lending rates were kept at 3.5 percent. These rates have remained since June 2016. "The Monetary Board's decision is based on its assessment that the inflation environment remains to be manageable," it said in its statement. The Monetary Board said "while there maybe potential transitory impact of the proposed tax reform program. the social safety nets are expected to mitigate the resulting inflationary pressures." Tetangco will be stepping down as central bank governor on July 3. He will be replaced by Nestor Espenilla. DMS