The Monetary Board of the Bangko Sentral ng Pilipinas (BSP) has maintained its policy rate for the second consecutive meeting. BSP Governor Felipe Medalla announced that the key rate remains unchanged at 5.75% for the overnight deposit facility, 6.25% for the overnight borrowing facility, and 6.75% for the overnight lending facility.
The central bank’s decision was driven by expectations that the inflation rate will slow down to 5.4% this year, lower than the 5.5% projection in the previous Board meeting in May. This forecast is due to the slowdown in the increase of food prices and petroleum products in the past month.
Governor Medalla cited the central bank’s commitment to supporting the country’s economic recovery and ensuring price stability. He emphasized that the BSP will continue to monitor economic indicators closely and adjust monetary policy as needed to sustain its objectives.
