Bangko Sentral ng Pilipinas Governor Benjamin Diokno said the timetable for the reduction of the benchmark interest rates stays despite the recent attacks on Saudi Arabia’s oil facilities which could impact on the domestic economy and trigger inflation pressures.
“As long as the oil prices don’t exceed $85 per barrel, we are still within our inflation target [of 2 to 4 percent],” Diokno said at the sidelines of a renewed partnership event between PayMaya and McDonald’s in Bonifacio Global City, Taguig.
Diokno said he was expecting oil prices to return to normal levels after a week or two. “Now it is showing signs of adjustments. So we will meet Sept. 26 and make a decision…,” Diokno said.
Diokno said earlier the BSP was closely monitoring the global and domestic markets’ response to the developments in Saudi Arabia.
The policy-making Monetary Board of the BSP is set to meet on Sept. 26 and most analysts expect the regulator to further cut the policy rates as inflation is anticipated to continue its downward trajectory in the coming months.
