KEY RATES, INFLATION FORECASTS UNCHANGED
PHILIPPINE
Consumer price growth forecasts for this year to 2019 were also retained despite upside risks, the Bangko Sentral ng Pilipinas (BSP) announced.
kept the central bank’s overnight reverse repurchase, overnight lending and percent and 2.5 percent, respectively.
Reserve requirement ratios were also kept at 20 percent.
based on its assessment that the out been broadly unchanged,” central bank Governor Nestor Espenilla Jr. said in a statement read by Deputy Governor meeting.
maintained even as monetary authori- ties noted that the overall balance of risks remained tilted towards the upside due to possible crude price hikes.
it hits $60-65 per barrel, will not be Guinigundo said.
In the statement, Espenilla said that anchored to the target over the policy
While there may be transitory effects from the proposed tax reform program, mitigation measures and the resulting improvement in output and productivity are expected to temper the impact over the medium term.
Proposed rice industry reforms in- volving the replacement of quantitative restrictions with tariffs and the deregulation of imports could serve to reduce
that geopolitical tensions and lingering uncertainty over macroeconomic policies in advanced economies continue to pose downside risks to the near-term prospects for global economic growth,” he said.
that prospects for domestic economic - ant consumer and business sentiment and ample liquidity.
As credit continues to expand in line with output growth, Espenilla said that
monetary authorities remained watchful over evolving liquidity and credit conditions and their implica
“Based on these considerations, prevailing monetary policy settings should be kept,” he said.
He said the BSP would remain vigilant against any risks to the policy settings as needed.
Steady rates seen
Policy rates, London- based research consultancy Capital Eco- nomics said, will likely remain on hold throughout 2018.
“We continue to think that the policy rate will remain unchanged next year,” Asia economist Alex Holmes said.
He noted overheating fears but said that gross domestic product growth was not exceptionally fast given the country’s level of devel- opment and was broadly in line with the estimated trend rate.
some concerns about the amount property sector, most new credit is being directed towards productive new investments in infrastructure and manufacturing, which should boost long-run growth prospects,” he said.