Philippine central bank keeps rate at 4.25% as inflation risks rise
The bank says that to raise the rate will delay the recovery of the economy
Add BT as a preferred source
[MANILA] The Philippine central bank said on Thursday (Mar 26) that it had decided to keep its policy rate at 4.25 per cent. The bank added that it will act as needed to maintain price stability, and address likely second-round effects.
The Bangko Sentral ng Pilipinas (BSP), which was not scheduled to review interest rates until Apr 23, said mounting risks to inflation require sustained vigilance.
In a statement, it said that inflation this year was expected to breach the 4 per cent ceiling, but move back towards the tolerance range by 2027.
The bank added: “As a data-driven monetary authority, and in light of fast-changing developments and uncertain economic conditions, the monetary board met today and decided to maintain the policy rate at 4.25 per cent.
“Over the near term, the monetary board (characterises) upside risks to inflation as largely supply-driven, for which monetary policy has limited effectiveness. At the same time, the BSP (expects) continued weak economic growth in 2026. To raise the policy rate at this time would delay the recovery.” REUTERS
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Share with us your feedback on BT's products and services
TRENDING NOW
On the board but frozen out: The Taib family feud tearing Sarawak construction giant apart
Not retirement, but a rewiring and fresh perspectives post-DBS, says Piyush Gupta
Thai and Vietnamese farmers may stop planting rice because of the Iran war. Here’s why
Power of payouts: A big chunk of the STI has just gone ex-dividend. What’s next?
