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July 14, 2024

BSP Governor signals rate pause amid declining inflation and interest rate concerns

BSP Governor Felipe M. Medalla suggests that the central bank will maintain the benchmark rate at 6.25 percent during the upcoming policy meeting on June 22.

The governor cited a declining inflation trend as a reason to pause.

Medalla emphasizes the importance of inflation as the main driver for rate decisions and expresses concerns about the market’s perception of the interest rate differential between BSP and US Federal Reserve rates.

The BSP expects inflation to drop below four percent by September or October.