The Monetary Board (MB) maintained its policy stance in a meeting yesterday amid expectations that the rise in commodity prices would be tempered in the next three years.
Bangko Sentral ng Pilipinas (BSP) Governor Amando M. Tetangco Jr., who is also Monetary Board chair, said in a briefing that the rate on the overnight reverse repurchase facility was kept at 3 percent.
Tetangco added that the corresponding rates on the overnight lending and deposit facilities were also maintained at 3.5 percent and 2.5 percent, respectively.
He said the decision was based on the MB’s assessment that the “inflation environment continued to be manageable.”
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“Latest baseline forecasts indicate a lower path of future inflation, with average inflation remaining with the target of 3 percent plus or minus one percentage point for 2017-2019,” Tetangco said.
“At the same time, the assessment risks to the inflation outlook remains tilted toward the upside,” he added. “While there may be potential transitory impact of the proposed tax reform program, the social safety nets are expected to mitigate the resulting inflationary pressures.”
