Philippines Monetary Policy


Central Bank holds rates again in September

At its 12 September monetary policy meeting, the Central Bank left its Reverse Repurchase rate unchanged at 3.50% for the 12th consecutive month, a decision widely expected by the market. At the same time, the Bank decided to keep interest rates on its Special Deposit Accounts (SDA) facility stable. SDA facilities are fixed-term deposit accounts with maturities between one week and one month that the Central Bank offers to credit institutions and bank trust entities.

The Central Bank stated that, "the Monetary Board's decision is based on its assessment of a benign inflation environment." According to the Bank, inflation is expected to remain within the target range of 4.0% plus or minus 1% in 2013 as well as in 2014. Moreover, it stated that inflation expectations are expected to remain well anchored going forward. The Bank's outlook is supported by the solid pace of domestic economic activity. Moreover, the Bank is continuing to monitor the impact of global developments in order to ensure the ongoing effectiveness of monetary policy.

Consensus Forecast panelists see the Reverse Repurchase rate at 3.69% in 2013. For 2014, panelists expect the Reverse Repurchase rate to rise to 4.14%.

Author:, Economist

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Philippines Monetary Policy Chart

Philippines Monetary Policy September 2013

Note: Reverse Repurchase Rate in %.
Source: Central Bank of the Philippines (BSP).

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