Philippines Monetary Policy


Philippines: Central Bank keeps rates unchanged in June

June 13, 2013

At its 13 June monetary policy meeting, the Central Bank left its Reverse Repurchase rate unchanged at 3.50%, in 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 by banks and bank trust entities within the Central Bank with maturities between one week and one month.

According to the Central Bank, "the Monetary Board's decision is based on its assessment that the inflation environment remains benign, with expectations firmly anchored within the inflation target band". Moreover, liquidity and credit availability should continue to sustain economic activity in the next months.

Monetary authorities added that following the weak pace of global economic activity, risks to the inflation outlook could continue to ease going forward. That said, the Bank stated that upward pressures on inflation could still stem from the impact of sustained capital inflows and energy price adjustments. According to the Bank, the decision to maintain rates unchanged this month also gives time to monitor the effects of recent fine-tuning operations by the Central Bank.

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


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Philippines Monetary Policy Chart

Philippines Monetary Policy May 2013

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

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