Philippine central bank to keep policy steady

All 21 economists in a Feb 1 to 14 poll predicted the BSP would leave its benchmark rate at 2% at its Feb 17 meeting. That was in line with governor Benjamin Diokno’s (pic) view monetary policy would remain accommodative as long as required to underpin growth and not necessarily follow the United States Federal Reserve (Fed), which is expected to raise rates next month.

BENGALURU: The Philippine central bank will wait until the end of the year before raising interest rates from a record low 2% to support an uneven economic recovery from the Covid-19 pandemic, a Reuters poll has found.

With inflation remaining subdued compared to advanced economies and growth in the South-East Asian nation yet to return to pre-pandemic levels, the Bangko Sentral ng Pilipinas (BSP) will stick to its dovish stance.