MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) kept interest rates unchanged yesterday, but raised the inflation forecast for 2018 amid rising oil prices, higher liquidity in the financial system and the weak peso. BSP Governor Nestor Espenilla Jr. said the Monetary Board retained the interest rate on the overnight reverse repurchase facility at three percent as well as the corresponding interest rates on the overnight lending and deposit facilities based on the assessment that inflation outlook remains manageable. For his part, BSP Deputy Governor Diwa Guinigundo said authorities kept the inflation forecast at 3.2 percent in 2017 and 2019. “If you look at our inflation forecast, there is very little reason for us to adjust monetary settings at this point in time,” Guinigundo said. Chidu Narayanan, economist for Asia at Standard Chartered Bank, said the Monetary Board is seen maintaining a neutral monetary policy stance through 2017.

Source: Philippine Star November 09, 2017 16:30 UTC