BSP keeps tight monetary policy on hotter March inflation

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) on Thursday extended its pause on any rate adjustments as inflation has yet to show a more convincing downtrend that would prompt an easing action.

At its meeting, the powerful Monetary Board left the target reverse repurchase rate untouched at 6.5 percent, the highest in almost 17 years.

It was a decision that was widely expected.

READ: BSP in no hurry to change ‘hawkish’ stance

BSP Governor Eli Remolona Jr. last month said the BSP would stay hawkish—or in favor of keeping borrowing rates high—in the face of persistent price pressures that may upset inflation expectations.

READ: March inflation rate rose to 3.7% as rice price hikes hit 15-year high

Inflation, as measured by the consumer price index (CPI), bolted 3.7 percent year-on-year in March, beating the February reading of 3.4 percent.

The last time the BSP delivered an anti-inflation rate hike was during an off-cycle decision in October last year.