The key interest rates of the Bangko Sentral ng Pilipinas (BSP) were maintained at their record lows on Thursday as monetary authorities project the average inflation returning within target this year. Overnight borrowing, lending and deposit rates were retained at 2.00 percent, 1.50 percent and 2.50 percent, respectively, following the central bank’s policymaking Monetary Board’s third rate-setting policy meeting for 2021. “Latest inflation forecasts indicate that inflation is likely to settle within the target range in 2021 and 2022,” BSP Governor Benjamin Diokno said in a virtual briefing. Overall, he said the projected course of inflation and the threats to domestic economic growth justify maintaining current monetary policy settings. The Monetary Board believes that monetary policy should continue to support domestic demand, particularly as risk aversion continues to stifle credit activity despite sufficient liquidity in the financial system.

Source: Manila Times May 12, 2021 16:25 UTC