Standard Chartered sees rates unchanged

British financial giant Standard Chartered Bank said Wednesday the Monetary Board of the Bangko Sentral ng Pilipinas will likely keep the record-low policy rate of 2 percent for the rest of the year until 2022, as inflation rate is expected to moderate in the coming months.

Chidu Narayanan, Standard Chartered Bank economist for Asia, said in a report for its meeting today he expects the BSP to keep the policy rate unchanged.

“Inflation has plateaued in the second quarter after spiking sharply in the first quarter, as the imposition of nationwide lockdowns impacted activity, hurting demand,” Narayanan said.

“We expect inflation to ease in the second half as the low base from 2020 fades; this should provide BSP with space to maintain easy monetary policy, at least through the rest of 2021,” he said.

Due to stable food prices, inflation remained steady at 4.5 percent for the third successive month in May 2021, after posting a 26-month high of 4.7 percent in February 2021. 

Topics: Standard Chartered Bank , Monetary Board , Bangko Sentral ng Pilipinas
COMMENT DISCLAIMER: Reader comments posted on this Web site are not in any way endorsed by Manila Standard. Comments are views by readers who exercise their right to free expression and they do not necessarily represent or reflect the position or viewpoint of While reserving this publication’s right to delete comments that are deemed offensive, indecent or inconsistent with Manila Standard editorial standards, Manila Standard may not be held liable for any false information posted by readers in this comments section.
AdvertisementSpeaker GMA