BSP keeps rates unchanged as expected

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) kept its key rate unchanged at 6.5 percent on Thursday, extending its pause for the sixth straight meeting.

The Monetary Board, the BSP’s policy-making body, decided to keep the benchmark rate at its highest in more than 17 years although risks to inflation are now tilted to the downside due to reductions in the tariff on rice and other agricultural commodities.

READ: BSP unlikely to cut rates ahead of US Fed, says Nomura

The decision was widely expected by analysts, including the nine economists polled by the Inquirer last week.

Analysts said a weak peso, which had fallen to 20-month lows, is preventing the central bank from easing its monetary policy sooner.