The Philippine central bank left its benchmark interest rate unchanged for a third straight meeting after economic growth floundered and inflation cooled.
(Bloomberg) — The Philippine central bank left its benchmark interest rate unchanged for a third straight meeting after economic growth floundered and inflation cooled.
The Bangko Sentral ng Pilipinas held its overnight reverse repurchase rate at 6.25% on Thursday during Eli Remolona’s first policy decision as governor. The move was predicted by 22 of 24 economists in a Bloomberg survey, with two expecting a rate hike.
The pause gives the central bank time to further assess the impact of its aggressive monetary tightening that lifted borrowing costs to a 16-year high. Excluding the pandemic years, the economy posted its weakest expansion since 2011 last quarter at 4.3%.
While inflation has been decelerating for the past six months, price gains remain above the central bank’s 2%-4% target, as the peso trading near a nine-month low could further stoke rice and fuel prices. The Philippines imports almost all of its oil needs and about 10% of its rice requirement.
–With assistance from Manolo Serapio Jr., Cecilia Yap and Tomoko Sato.
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