The Bangko Sentral ng Pilipinas’ key interest rates will likely remain unchanged until the second or third quarter of next year amid an improving outlook owing to an accelerating vaccine rollout and declining number of coronavirus cases in the country.
BSP Governor Benjamin E. Diokno said the Monetary Board would consider various factors “before deciding on the timing and circumstances to unwind its pandemic-induced support measures such as inflation and output outlook, liquidity and credit conditions, financial sector risks, state of public health, and global developments and spillovers.”
“Keeping a patient hand on the BSP’s policy levers, along with appropriate fiscal and health interventions, will keep the economic recovery more sustainable over the next few quarters,” said Diokno.
The BSP has kept the policy rate steady at two percent since November last year.
“When domestic developments warrant a scale-down of policy support as economic recovery gains traction, the BSP will ensure a smooth transition in winding down its time and state-bound measures,” he said during his regular online press briefing.
Diokno said the BSP would continue to coordinate closely with fiscal authorities to ensure enough policy support remains for the economic recovery to gain traction.