Wary of flood in cash, BSP stops interest rate cuts

The central bank on Thursday (June 20) stepped on the brakes of its interest rate cuts to prevent excess cash from flooding the market and abetting a surprise increase in consumer prices last May.

The Bangko Sentral ng Pilipinas (BSP), in a press briefing by BSP Governor Benjamin Diokno, would no longer cut interest rates and leave these unchanged.

The Monetary Board decided to keep interest rates on BSP’s overnight reverse repurchase facility, a type of security with a fixed date and price of repurchase, at 4.5 percent.

Interest rates on overnight lending and deposits were also untouched. (Editor: Tony Bergonia)