Philippines Monetary Policy Unchanged in October
Bankgo Sentral NG Pilipinas decided on October 24th to leave its key policy rate rate unchanged at 3.5 percent, in line with market expectations, citing benign inflation and robust domestic activity.
10/24/2013 10:07:53 AM
Statement by the Bankgo Sentral NG Pilipinas:
The Monetary Board’s decision is based on its assessment of a benign inflation environment. Latest baseline forecasts indicate that the future inflation path remains in line with the target range of 4.0 ± 1.0 percent in 2013-2014 and 3.0 ± 1.0 percent for 2015. Inflation expectations also continue to be firmly anchored. The Monetary Board noted that while global economic conditions remain challenging, prospects for domestic activity remain robust, supported by buoyant domestic demand and favorable consumer and business sentiment.
At the same time, the assessment of risks to the inflation outlook remains unchanged. With the bulk of lending going to the productive sectors of the economy, the improvement in the economy’s absorptive capacity is expected to be sustained, helping to moderate price pressures.
Going forward, the BSP will continue to monitor emerging price and output conditions to ensure that monetary policy remains consistent with price stability while being supportive of economic growth.