MANILA -The Monetary Board as expected kept the Bangko Sentral ng Pilipinas key policy rate at 6.25 percent, saying that a pause in hikes was appropriate based on the latest data and assessment of previous rate increases.
Since May 2022, the BSP overnight borrowing rate has risen by 4.25 percentage points from a historic low of 2 percent.
MB chair and BSP Governor Felipe Medalla said in a press briefing that their average inflation projection for 2023 is now 5.5 percent, lower than the 6 percent forecast in February. Also, the average inflation forecast for 2024 is now down fell to 2.8 percent from 3.1 percent.
The MB “also noted that while GDP (gross domestic product) growth has remained robust in the first quarter of 2023, demand indicators have also pointed to a potential moderation in the recent months, suggesting that previous policy rate increases by the BSP continue to work their way through the economy,” Medalla said.
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