No further rate adjustments seen for BSP

MANILA, Philippines - The Bangko Sentral ng Pilipinas is not expected to adjust key policy rates further this year, according to the latest Market Call report of the First Metro Investment Corp. and the University of Asia and the Pacific, as monetary officials focus on price pressures to keep inflation in check.

 “We think the BSP is done with its tightening cycle for the year. They will be closely monitoring price movements and pressures in the coming months to see if and when they should resume constricting liquidity in the financial system,” FMIC-UA&P, report said.

Monetary authorities last week kept key policy rates steady as inflation expectations are now expected to fall within the goals for this year until 2016.

Earlier, the central bank hiked key policy rates by a total of 50 basis points to ensure inflation would remain anchored. Overnight borrowing and overnight lending rates currently stand at four percent and six percent, respectively.