Philippine central bank keeps benchmark rate unchanged at 6.50%

THE Philippine central bank kept its benchmark interest rate steady at 6.50 per cent for a third straight meeting on Thursday (Feb 15), as price pressures have further eased.

All 24 economists in a Reuters poll expected the central bank to leave its target reverse repurchase rate unchanged.

The Bangko Sentral ng Pilipinas (BSP) has raised rates by 450 basis points since May 2022, including an off-cycle hike in October.

“Risks to inflation outlook have receded,” the BSP said in a statement read at a media briefing.

Annual inflation was at 2.8 per cent in January, the slowest in more than three years, on lower price increases in food, utility and fuel prices.

The central bank has set a 2 per cent to 4 per cent inflation target for 2024. REUTERS