The Monetary Board, the policy-making body of Bangko Sentral ng Pilipinas, on Thursday kept the benchmark interest rates steady on manageable inflation environment and robust domestic economic growth.
It maintained interest rates at 3.5 percent for overnight lending, 3 percent for overnight borrowing and 2.5 percent for deposit facilities. The reserve requirement ratios were also retained.
Bangko Sentral Governor Nestor Espenilla Jr. said the board’s decision was based on its assessment that the inflation environment remained manageable.
“Latest forecasts show that the future inflation path will continue to be within the target range for 2017-2019. Meanwhile, inflation expectations remain firmly anchored close to the midpoint of the government’s 2 to 4 percent over the policy horizon,” Espenilla said.
The board also maintained the inflation average forecast this year and next at 3.2 percent. The forecast for 2019 was adjusted upward to 3.2 percent from an earlier estimate of 3.1 percent.