AFTER raising key interest rates five times this year, the Monetary Board on Thursday, December 13, decided to keep the policy rates steady amid lower inflation forecasts.
The board, in its meeting Thursday, kept the Bangko Sentral ng Pilipinas (BSP) overnight reverse repurchase (RRP) facility steady at 4.75 percent.
The interest rates on the overnight lending and deposit facilities were also held steady.
Bangko Sentral Assistant Governor Francisco G. Dakila Jr., reading the statement issued by Bangko Sentral Governor Nestor Espenilla in a press briefing following the board meeting, said the "Monetary Board deemed it prudent for the time being to keep monetary policy settings steady and allow previous monetary responses to continue to work their way through the economy."
Policy makers cited forecasts which put inflation within a target band of 3.0 percent plus or minus 1.0 percentage point for 2019 to 2020.
"Inflation expectations have also steadied given the decline in international crude oil prices and stabilization of the peso," the board added.
The board first raised the central bank's interest rate on May 10 by 25 basis points to bring the RRP facility to 3.25 percent, after inflation hit 4.5 percent year-on-year in April.
The rate was raised by another 25 basis points to 3.5 percent on June 21 and by 50 basis points to 4.0 percent on August 10.
It was further raised on September 27 to 4.5 percent in a bid to tame inflation and by another 25 basis points to 4.75 percent on November 15. (MVI/SunStar Philippines)