BSP to resume interest rate cuts as inflation threat eases

The central bank will likely resume easing interest rates after the inflation rate in June showed prices remained stable and declined to its lowest level in two years.

The Bangko Sentral ng Pilipinas (BSP) suspended its monetary easing drive for fear that further cutting interest rates, which would lead to higher liquidity or money in circulation, would aggravate an unexpected rise in inflation last May.

In a statement, media, BSP Governor Benjamin Diokno said June’s consumer price index of 2.7 percent was “consistent” with assessment that inflation will “firmly settle” within the target range of 3 percent, plus or minus 1 percentage point, for 2019 and 2020. (Editor: Tony Bergonia)