WebClick Tracer

November 28, 2023

BSP holds steady at 6.5% amidst inflation risks

The Bangko Sentral ng Pilipinas (BSP) has decided to maintain its benchmark interest rate at 6.5%, citing its last off-cycle adjustment as sufficiently tight amidst inflationary risks.

Bankero and BSP Deputy Governor Francisco G. Dakila Jr. stated that despite higher risk-adjusted inflation forecasts, the outlook has moderated. The BSP remains ready to tighten monetary policy if needed.

Dakila disclosed a 6.1% risk-adjusted inflation forecast for 2023, slightly lower than October’s estimate. Key risks include higher transport charges and electricity rates.

The BSP also noted a rebound in third-quarter GDP growth, supporting medium-term growth prospects. Interest rates on deposits and lending facilities were kept at six percent and seven percent, respectively.

The decision considers the need for previous policy adjustments to continue influencing the economy.