BSP keeps key rate at 17-year high as inflation risk remains

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) on Thursday extended its pause on any rate adjustments as inflation remains stubbornly high.

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

It was a decision that was widely expected by the market.

Inflation, as measured by the consumer price index (CPI), quickened to 3.8 percent year-on-year in April, beating the March reading of 3.7 percent due to higher food and transport costs.

READ: April inflation quickens to 3.8%, still within target range

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

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