MANILA, April 8 (Xinhua) -- The Philippine central bank opted Monday to keep the bank's target reverse repurchase rate at 6.5 percent, and the interest rates on the overnight deposit and lending facilities at 6 percent and 7 percent respectively.
In a press conference, Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona said the latest inflation path has shifted slightly higher but still remains within target.
Remolona said the risk-adjusted inflation forecast for 2024 has risen to 4 percent from 3.9 percent in the previous meeting. For 2025, the risk-adjusted inflation forecast remains unchanged at 3.5 percent.
"The risks to the inflation outlook continue to lean toward the upside. Possible further price pressures are linked mainly to higher transport charges, elevated food prices, higher electricity rates, and global oil prices," Remolona said, adding potential minimum wage adjustments could also give rise to second-round effects.
Meanwhile, the central banker said the latest demand indicators suggest that domestic growth prospects remain largely intact over the medium term, even as overall activity gradually responds to tighter financial conditions.
Given these considerations, the Monetary Board deems it appropriate to maintain the BSP's tight monetary policy settings, Remolona said.
The BSP will continue to support the national government's policies and programs to address supply-side pressures on the prices of key food commodities, he added. ■
