Previously the Bank raised its interest rate in May this year by 25 basis points to 4.50%. The Philippines reported annual consumer price inflation of 4.5% in May, up from 4.3% in April, while core inflation was measured as 3.7%. Inflation is currently tracking inside the Bank's inflation target range of 3%-5%.
Thursday, June 16, 2011
Philippine Central Bank Holds Interest Rate at 4.50%
The Bangko Sentral ng Pilipinas held its overnight borrowing rate unchanged at 4.50% and the overnight lending rate at 6.50%. However the Bank did increase its required reserve ratio by 100 basis points, effective June 24. The Bank said: "In deciding to maintain policy rates, the Monetary Board noted that the latest baseline forecasts show a lower path and that inflation expectations have shown some signs of leveling off." ... "Meanwhile, the Monetary Board's decision to raise the reserve requirement is a preemptive move to counter any additional inflationary pressures from excess liquidity. "