Philippines central bank maintains target RRP rate at 6.5%

09 Apr '24

1 min read

Philippines central bank maintains target RRP rate at 6.5%

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Bangko Sentral ng Pilipinas (BSP) has maintained the reverse repurchase rate at 6.50 per cent, with overnight deposit and lending rates at 6.0 per cent and 7.0 per cent.
Despite a slight inflation forecast increase for 2024 to 4.0 per cent, the 2025 forecast remains at 3.5 per cent.
The BSP will adjust policies if needed to ensure price stability.

Bangko Sentral ng Pilipinas (BSP) Monetary Board has opted to maintain the target reverse repurchase (RRP) rate at 6.50 per cent, leaving the overnight deposit and lending facility rates unchanged at 6.0 per cent and 7.0 per cent, respectively.

The decision comes amid slight upward revisions in inflation forecasts, with the risk-adjusted projection for 2024 increasing to 4.0 per cent, up from 3.9 per cent. However, the forecast for 2025 remains steady at 3.5 per cent. The Board recognises that while inflation risks are tilting upwards, driven by factors such as higher transport and food costs, elevated electricity charges, and global oil prices, inflation expectations are still broadly in check, the Board said in a statement.

Despite these challenges, the Board noted that domestic growth prospects appear robust, suggesting a resilient economy that is adjusting to the tighter financial conditions.

The BSP remains ready to adjust its monetary policy settings as necessary, in keeping with its primary mandate to safeguard price stability, the release added.

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