Monetary Board keeps policy rates unchanged

February 7, 2019

The Bangko Sentral ng Pilipinas (BSP)'s policy-setting body said it kept key rates unchanged in their  meeting Thursday.

The BSP said the decision of the Monetary Board is ''based on its assessment of a more manageable inflation environment.''

The interest rate on the BSP overnight reverse repurchase facility remains at 4.75 percent.

''Latest baseline inflation forecasts show inflation settling within the target band of 3.0 percent ± 1.0 percentage point for 2019-2020, as price pressures continue to recede due to the decline in international crude oil prices and the normalization of supply conditions for key food items,'' the central bank said in a statement.

''Inflation expectations have also declined further and are now aligned to the inflation target 
for 2019-2020,'' it added.

The Monetary Board also emphasized that the BSP remains vigilant against developments that could affect the outlook for inflation and is prepared to take appropriate policy action as necessary to safeguard its price and financial stability objectives.  DMS