Central bank maintains benchmark interest rate

December 12, 2019

The Bangko Sentral ng Pilipinas maintained Thursday the benchmark interest rate amid benign inflation environment.

In a statement, the Monetary Board said the BSP's overnight reverse repurchase facility was kept at 4.0 percent and interest rates on the overnight deposit and lending facilities were unchanged at 3.5 percent and 4.5 percent, respectively.

The central bank noted that forecasts indicate that the future inflation path remains within the target range of 3.0 ± 1.0 percentage point in 2020-2021.

"Notwithstanding the weak global growth outlook, prospects for the Philippine economy continue to be robust on the back of firm domestic demand. Sustained policy support from increased fiscal spending, as well as improved domestic liquidity conditions owing to recent monetary adjustments, is also expected to support growth in the coming months," it added.

Thursday's MB meeting was its last for this year. DMS