Central Banks
Philippines Keeps Key Rate Steady, Says Early Cuts Unlikely
- Medalla says ideal to see below 4% inflation before rate cut
- Term of governor to end July 3, no word yet on appointment
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The Philippines kept its benchmark interest rate unchanged as price and currency pressures waned, although authorities signaled they’re not in a hurry to loosen policy settings.
The Bangko Sentral ng Pilipinas maintained its overnight reverse repurchase rate at 6.25% on Thursday, as seen by all 25 economists in a Bloomberg survey. Authorities stood pat for a second straight meeting after a combined 425 basis points of hikes during a one-year tightening cycle that took borrowing costs to the highest in 16 years.