Key BSP rates unchanged, inflation seen hitting target

The Monetary Board remains watchful against any broader-based, he added.

Monetary authorities, Espenilla continued, will take immediate and appropriate measures to ensure that the policy stance continues to support price and

Asked to comment on the impact of the US Federal Reserve rate hike, he pointed out that the BSP pursues an independent monetary policy.

policy positioning is not really in lock-step in what the Fed does. So what the Fed did today is an important piece of information that we consider as part of external developments,” he said.

“But what drives our monetary policy evaluation is really our assessment of domestic conditions, particularly since we are an inflation-targeting he added.

The US central bank on Wednesday (Thursday in Manila) announced that it was raising its policy rate by 25 basis points to 1.5-1.75 percent.

Meanwhile, London-based research consultancy would not force the BSP to tighten.

is an increase in indirect taxes on high-sugar drinks, tobacco and alcohol. Although the year-on-year rate it should drop back at the start of next year,” it said.

“What’s more, the statistics authority has started producing a rebased inflation series, which will become the sole measure in July. The new series shows measure and within BSP’s target range,” it added.

Given these, Capital Economics said it expected key interest rates to remain on hold for the rest of the year.