Monetary authorities yesterday kept key policy rates steady but slightly raised inflation forecasts for the next three years mainly on expectations of higher oil prices.
In a press conference after the Monetary Board meeting yesterday, Bangko Sentral ng Pilipinas Governor Nestor A. Espenilla Jr. said the BSP’s policy-setting body maintained the policy rate or the overnight reverse repurchase (RRP) facility at 3 percent.
The overnight lending and deposit facilities as well as the reserve requirement ratios were also unchanged.
“The Monetary Board’s decision is based on its assessment that the inflation environment remains manageable. While inflation forecasts have risen slightly due to the recent increase in global oil prices, the future inflation path continues to be within the target for 2017-2019,” Espenilla said.
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BSP Deputy Governor Diwa C. Guinigundo said they slightly jacked up their yearly inflation forecasts for 2017 to 2019.
For 2017, the forecast was increased to 3.2 percent from 3.1 percent previously; 3.2 percent from 3 percent previously for 2018, and 3.1 percent from 3 percent for 2019.
