BSP keeps interest rates at record low
The Bangko Sentral ng Pilipinas (BSP) kept its interest rates steady at a record low in nearly three months to accommodate sustainable economic recovery.
The BSP maintained the rate on the overnight reverse repurchase facility at 2.0% for a fifth consecutive meeting, due to lingering downside risks to growth, even as inflation has stabilized above its target band amid heightened COVID-19 restrictions in some areas.
“Economic activity has improved in recent weeks, but the overall momentum of the economic recovery remains tentative as the threat of COVID-19 infections continues,” said BSP Governor Benjamin Diokno.
The country’s inflation rate has been solid at 4.5% for the last three months, above the BSP target range of 2 to 4 percent.
