real-time news and commentary for investors
Thursday, Sep 12
Philippine central bank keeps rates on hold amid subdued inflation, robust growth
- The Philippine central bank keeps rates on hold: Policy rate, 3.5%; reverse repo, 3.5%; repo, 5.5%. Reserve requirement ratios are also unchanged. (full release)
- The central bank described the inflation outlook as "benign." Last month, inflation hit a four-year low and today, the central bank lowered its inflation forecasts for 2013 and 2014 to 3% (from 3.3%) and 3.9% (from 4%) respectively. The target range is 4% plus or minus 1%.
- "Domestic economic activity has also been growing at a solid pace, supported by firm demand and buoyant business sentiment," the monetary board says, underscoring the country's robust GDP growth which has topped 7% for four consecutive quarters.
- The news underscores the degree to which the country's fortunes have diverged from those of other regional and emerging markets where currency pressure and slower growth are taking their toll.
- PSEi (EPHE) -0.3%