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
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[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
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