BSP holds rate steady, surprising market

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) on Thursday kept its key rate unchanged at 5.75 percent, hitting the pause button on easing.

The latest action defied market expectations. Majority of economists polled by the Inquirer last week had predicted another quarter-point cut to the policy rate, which banks typically use as a guide when pricing loans.

Those who had expected another cut believed that the below-target economic growth last year was enough reason for the BSP to further ease monetary policy.

But the BSP said “domestic growth prospects continue to be firm”.