MANILA, Philippines - The central bank is not inclined to tweak its monetary policy stance for now given subdued inflation and continued robust domestic growth, Bangko Sentral ng Pilipinas (BSP) Deputy Governor Diwa Guinigundo said yesterday.
“We don’t need to reduce the policy rate at this point because the economy is growing and inflation rate is within the target of two to three percent,” Guinigundo told reporters on the sidelines of the Asian Pacific Economic (APEC) forum in Tagaytay.
“There is no compelling reason why we should change our monetary policy stance, it remains appropriate,” he added. Ample liquidity and strong domestic activity provide ample fiscal headroom for the central bank to retain the current benchmark interest rates despite a steep drop in the price of oil and China’s slowing economy.
The monetary board will meet on March 26 to decide whether or not to retain existing interest rates.
The central bank is committed to promote and maintain price stability and provide proactive leadership in bringing about a strong financial system conducive to a balanced and sustainable growth of the economy.
During its last meeting on Feb.12, the monetary board left its key policy rate on hold at four percent for the overnight borrowing or reverse repurchase facility and six percent for the overnight lending or repurchase facility.
The interest rates on special deposit accounts were also kept steady.