The Philippine central bank has decided to keep its benchmark interest rate unchanged for the sixth consecutive meeting, citing well-anchored inflation expectations.
The Monetary Board, led by Eli Remolona, upheld the target reverse repurchase rate at 6.50 percent, a move anticipated by many analysts.
Correspondingly, the interest rates on the overnight deposit and lending facilities remain at 6.0 percent and 7.0 percent, respectively.
Earlier in October, the bank had increased the rate by 0.25 percentage points.
The bank noted that inflation is trending closer to the midpoint of its 2-4 percent target range. The revised risk-adjusted inflation forecasts have been lowered to 3.1 percent for both 2024 and 2025, down from previous estimates of 3.8 percent and 3.7 percent, respectively.
Looking ahead, the bank expects domestic economic growth to align with medium-term trends, supported by favorable labor market conditions and robust net exports.
The policy board also anticipates a further easing of price pressures in the latter half of the year. If this trend continues, it could create more room to consider a less restrictive monetary policy stance, according to a statement from the bank.
