ZCZC
BCN-11
Philippines-Central Bank-Interest Rate
Philippine central bank maintains interest rate at 2.0 pct
MANILA, Feb 11,2021 (BSS/XINHUA) – The Philippines’ central bank on Thursday maintained its interest rate for the overnight reverse repurchase facility at 2.0 percent.
The Bangko Sentral ng Pilipinas (BSP) said the monetary board also kept the interest rates for the overnight deposit and lending facilities at 1.5 percent and 2.5 percent, respectively.
“The monetary board noted that inflation is likely to remain elevated in the coming months, reflecting the impact of supply constraints on domestic prices of key food commodities such as meat and vegetables (and) the recent uptick in international oil prices,” the BSP said in a statement.
The BSP said the latest baseline projections showed inflation returning to the target range of 2 to 4 percent over the policy horizon as supply-side influences subside.
The BSP said the monetary board also noted that “inflation expectations continue to be anchored within the inflation target band.”
“The balance of risks to the inflation outlook now appears to be broadly balanced around the baseline path in 2021 but is seen to continue leaning toward the downside in 2022,” the BSP added.
It said a tighter supply of meat products, owing in part to the African Swine Fever outbreak in the country, could lend further upside pressures on inflation.
However, the BSP said the ongoing COVID-19 pandemic “may continue to pose downside risks to demand and to the inflation outlook.”
The Philippines has so far reported 543,282 confirmed cases of COVID-19, including 11,469 deaths.
BSS/XINHUA/TIT/1858HRS