Philippines central bank maintains target RRP rate at 6.5%

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.

ALCHEMPro News Desk (KD)