The Bangko Sentral ng Pilipinas (BSP) has hinted at another easing of monetary policy in the coming Monetary Board meeting next week following the release of low-inflation data for May.
Monetary authorities are expected to keep policy rates and special deposit account (SDA) rates unchanged on Thursday’s meeting in the wake of recent steps taken to stem speculative inflows.
The Bangko Sentral ng Pilipinas on Thursday slashed the interest rate on special deposit accounts to help curb the appreciation of the peso.
The Monetary Board is expected to keep policy rates unchanged when it holds its policy rate setting meet Thursday as the rise in consumer prices remains manageable, according to Barclays Bank and DBS Group.
INCREASES in the reserve requirement on banks are possible following the central bank’s move last Thursday to keep such ratios and policy interest rates steady, according to the DBS Group.
The Bangko Sentral ng Pilipinas on Thursday decided to keep its key policy rates steady, but slashed the interest rates on special deposit accounts to discourage dollar inflows that have been pushing up the peso to uncompetitive levels.
The peso moved sideways on Wednesday as the market awaited the policy rate-setting meeting of the Bangko Sentral ng Pilipinas.
The Bangko Sentral ng Pilipinas on Thursday kept key interest rates unchanged from their historic low levels, believing no adjustment is needed at the moment given the high economic growth and low inflation that the country now enjoys.
The Bangko Sentral ng Pilipinas has kept its key policy rates steady, saying the stimulus created by rate reductions done earlier this year should be enough to help sustain a robust growth for the economy.
The Bangko Sentral ng Pilipinas may hold policy rates steady until the end of the year as it may have already reached the end of its interest rate-reduction cycle, says UBS.
Further cuts in the central bank’s policy rates can be expected within this year following last week’s reduction by 25 basis points, according to DBS Group.
The Bangko Sentral ng Pilipinas hinted it might further cut its key policy rates, which were already at their record lows, to prevent inflation from falling below target range.
