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Bangko Sentral keeps interest rates steady

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<div class="embed-wrap"><figure data-feedback="fb:likes,fb:comments"><img src="https://sa.kapamilya.com/absnews/abscbnnews/media/2018/news/08/07/08072018-bsp-md.jpg"/><figcaption>Bangko Sentral ng Pilipinas. <em>Mark Demayo, ABS-CBN News</em></figcaption></figure></div><p>MANILA <strong>(UPDATE)</strong> – The Bangko Sentral ng Pilipinas kept interest rates steady on Thursday in line with analysts&#x27; expectations. </p><p>BSP Governor Benjamin Diokno said the Monetary Board decided to maintain the interest rate on the BSP’s overnight reverse repurchase facility, which banks use to price their loans, at 2 percent. </p><p>&quot;The interest rates on the overnight deposit and lending facilities were likewise kept at 1.5 percent and 2.5 percent, respectively,&quot; Diokno said. </p><p>The BSP said that while inflation is likely to remain high in the coming months, inflation would go back &quot;within the target range of 2-4 percent over the policy horizon as supply-side influences subside.&quot; </p><p>Inflation quickened to <a href="https://news.abs-cbn.com/business/02/05/21/philippine-inflation-quickens-to-42-percent-in-january">4.2 percent</a> in January as prices of pork, chicken, vegetables and oil products continued to rise along with the cost of services.</p><p>January&#x27;s inflation rate was higher than BSP&#x27;s forecast range of 3.3 to 4.1 percent for the month, and 2 to 4 percent annual forecast for 2020 until 2022. </p><p>A Reuters <a href="https://news.abs-cbn.com/business/02/10/21/bangko-sentral-seen-keeping-rate-steady-despite-inflation-pressures">poll</a> of economists on Wednesday predicted the BSP would leave its key rate unchanged for a second straight meeting.</p><p>Last year, the central bank <a href="https://news.abs-cbn.com/business/11/19/20/bangko-sentral-makes-surprise-rate-cut-as-economic-slump-continues">cut</a> interest rates by a cumulative 200 basis points to help shore up the economy amid the disruptions of the COVID-19 pandemic.</p><p>BDO Capital president Ed Francisco earlier said rate cuts are not enough to revive the economy.</p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/02/10/21/bsp-rate-cuts-not-enough-anymore-to-revive-economy-analyst">BSP rate cuts not enough anymore to revive economy: analyst</a></li></ul><p>The Philippine economy contracted <a href="https://news.abs-cbn.com/business/01/28/21/philippine-economy-shrinks-83-percent-in-fourth-quarter-full-2020-growth-at-95-pct">9.5 percent </a>in 2020 -- the worst since World War 2 due to the disruptions of the pandemic. </p><figure class="op-interactive"><iframe height="315" src="https://www.youtube.com/embed/F-d1_Ps9OgE?enablejsapi=1" width="560"></iframe></figure><div class="iwantbar">Watch more in <a href="//www.iwantv.com.ph/">iWantv</a> or <a href="//tfc.tv/">TFC.tv</a></div>

<p>The Bangko Sentral ng Pilipinas kept interest rates steady on Thursday in line with analysts' expectations. </p>

The Bangko Sentral ng Pilipinas kept interest rates steady on Thursday in line with analysts' expectations.