Philippines rates on hold for fifth consecutive meeting
(18 May 2015 – Philippines) The Bangko Sentral ng Pilipinas, held its benchmark interest rate for a fifth straight meeting.
The Philippines’central bank kept the rate it pays lenders for overnight deposits at 4 percent on 14 May and held the rate on special deposit accounts at 2.5 percent.
Faster economic growth in the nation has reduced the need for monetary stimulus, with deputy governor Diwa Guinigundo saying the economy was not in need of any additional support at present, despite the central bank raising its inflation forecasts for the next two years.
The inflation forecast for this year was raised to 2.3 percent and 2016’s forecast was raised to 2.6 percent, due to the El Nino weather pattern and a weaker peso.
The Bangko Sentral ng Pilipinas said in its statement that domestic demand conditions remained robust with ample liquidity and adequate government spending to support economic growth.
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