Classifieds powered by Gulf News

Philippines holds rate at 3% as inflation seen on target

Some economists speculate that Bangko Sentral ng Pilipinas may start raising interest rates as soon as the fourth quarter

Image Credit: File
The skyline of Makati, the financial district of Manila.
Gulf News

MANILA: The Philippine central bank left its benchmark interest rate unchanged at a record low with inflation seen remaining within its target band until 2019.

Asia’s worst-performing currency this year and surging credit growth have stoked speculation among some economists that Bangko Sentral ng Pilipinas may start raising interest rates as soon as the fourth quarter.

But policymakers have shrugged off concerns the economy may be overheating and have pointed out the central bank has tools to curb excesses.

The economy is headed for a sixth straight year of growth exceeding 6 per cent, among the world’s fastest.

While an ongoing conflict in the south and a deadly drug war pose rising risk, Moody’s Investors Service said it’s unlikely to stunt the economy.

Loading...