Philippines Central Bank Keeps Rate Low Despite Rising Inflation

The Philippines held its benchmark interest rate at a record low for a 10th straight meeting to boost economic growth, even as inflation accelerates.

Bangko Sentral ng Pilipinas kept the rate it pays lenders for overnight deposits at 3.5 percent, according to a statement in Manila today, as forecast by 16 of 17 economists surveyed by Bloomberg News. One predicted an increase to 3.75 percent.

Policy makers’ room to keep interest rates unchanged may be narrowing, Governor Amando Tetangco said yesterday, after a report showed Philippine inflation quickened to a two-year high in January. The peso slumped to its lowest level in more than three years this week as a reduction in U.S. monetary stimulus pummeled stocks and currencies in emerging markets.

Bloomberg

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