Philippine central bank stands pat, but flags inflation risks in this week's major decision

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BORACAY, Philippines Nov 20 (Reuters): The Philippine central bank kept its policy rate at a record low this week, maintaining support for the pandemic-hit economy even as it warned of risks to inflation next year.

The Bangko Sentral ng Pilipinas (BSP) kept the rate on the overnight reverse repurchase facility at 2.0%, saying it would prioritise policy support to ensure a sustained recovery but stood ready to respond to second round effects.

"On balance, the sum of new data suggests that there remains scope to hold monetary policy settings steady amid a manageable inflation environment," BSP Governor Benjamin Diokno said.