World Economy

Philippines CB Keeps Borrowing Rate on Hold

Philippines CB Keeps Borrowing Rate on HoldPhilippines CB Keeps Borrowing Rate on Hold

The Philippines’ central bank has kept borrowing rate on hold on strong growth and low inflation. The bank saw no reason to alter monetary policy settings at its meeting, its first since the Federal Reserve hiked rates, confident that growth will remain solid and inflation will stay within its comfort range, NewsNow reported. The policy-making Monetary Board kept the overnight borrowing rate steady at 3%, as well as the ceiling and floor rates of its interest rate corridor at 6% and 2.5%, respectively. “Domestic demand conditions are likely to stay firm, supported by solid private household spending, higher government expenditure,” Bangko Sentral ng Pilipinas Governor Amando Tetangco told a media briefing. After likely falling below target this year, inflation is forecast to move inside the central bank’s 2-4% target range in 2017 and the following year, due to possible power tariff hikes and a weaker peso. The central bank raised its inflation forecast for 2017 to 3.3% from 3%, and for 2018 to 3% from 2.9%.


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