Economics
Philippines Keeps Rate Steady With Inflation Concerns Rising
- All analysts surveyed expected central bank to hold rate at 2%
- Bank says inflation is transitory, mostly a supply-side issue
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The Philippine central bank held its benchmark interest rate at a record low for a second straight meeting to boost an economy that remains in recession and with inflationary pressures starting to mount.
Bangko Sentral ng Pilipinas left the benchmark rate at 2% Thursday, as predicted by all 19 analysts in a Bloomberg survey. The bank significantly raised its inflation forecast for the year-- to 4% from the 3.2% it predicted in December -- but said supply problems driving up food costs were transitory.