BSP keeps key rate unchanged at 6.25%

MANILA  -The Monetary Board kept the Bangko Sentral ng Pilipinas’ key policy rate at 6.25 percent, saying that the latest baseline projections continue to suggest a gradual return of inflation to the target band of 2 percent‑4 percent over the next 18 months.

This is the second MB policy meeting in a row that the benchmark rate is unchanged after rising by a total of 4.25 points over the past 12 months from a historic low of 2 percent.

MB Chair and BSP Governor Felipe Medalla said in a press briefing that average inflation for 2023 is now projected to settle at 5.4 percent, slightly lower than 5.5 percent previously,

“However, the balance of risks to the inflation outlook continues to lean toward the upside due to the potential impact of additional transport fare increases and minimum wage adjustments, persistent supply constraints of key food items, El Niño weather conditions, and possible knock-on effects of higher toll rates on agricultural prices,” Medalla said.