Bangko Sentral seen keeping interest rates steady | Inquirer Business

Bangko Sentral seen keeping interest rates steady

/ 05:04 AM September 09, 2021

Despite the sharp increases in the prices of basic consumer goods, the Bangko Sentral ng Pilipinas (BSP) is likely to maintain key interest rates at record-low levels to counter the economic fallout from the prolonged COVID-19 pandemic.

In a research note dated Sept. 7, economists from Japanese investment house Nomura said they expected the BSP to leave its key policy rate unchanged at 2 percent for the rest of the year and at least through the first half of 2022.


In a separate research note dated Sept. 7, JP Morgan economist Nur Raisah Rasid said that while inflation for the whole year would likely average higher than the BSP’s target range of 2-4 percent, the local monetary authority would likely “look past the overshooting” of the consumer price index (CPI) and “continue its current accommodative stance, in part due to concerns about domestic recovery.”

The country’s year-on-year inflation rate in August surged to a more than two-year high of 4.9 percent from 4 percent in July, mostly attributed to supply-side cost pressures, particularly on food items, especially with the onset of the rainy season.


Read Next
Don't miss out on the latest news and information.

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: Bangko Sentral ng Pilipinas, Banking, Interest rates‎
For feedback, complaints, or inquiries, contact us.

Curated business news

By providing an email address. I agree to the Terms of Use and
acknowledge that I have read the Privacy Policy.

© Copyright 1997-2021 | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.