The key policy rate on the BSP’s overnight reverse repurchase (RRP) facility was kept at 3.0 percent. The essential basis for all Monetary Board decisions is the BSP’s inflation target. The BSP is no exception: Its inflation forecasts change almost as often as the Monetary Board meets. The decision not to adjust the benchmark interest rate was based on the assumption that inflation will continue to remain within the target range. That means there is an increasing amount of money in the financial system, and that pushes inflation higher.

Source: Manila Times April 09, 2018 16:18 UTC