No pressure: BSP keeps rates steady despite Fed hike
There’s no need to match tightening moves abroad.
The Bangko Sentral ng Pilipinas (BSP) kept interest rates steady on Thursday, Dec. 14 hours after the United States proceeded to raise their rates.
In a statement, the Philippine central bank said they chose to maintain rates with the inflation environment “broadly unchanged,” and as domestic economic activity remains firm.
This is different from the US Federal Reserve’s thrust of raising interest rates as inflation is on the rise abroad.
“The Monetary Board also observed that geopolitical tensions and lingering uncertainty over macroeconomic policies in advanced economies continue to pose downside risks to the near-term prospects for global economic growth,” the BSP said.
“Nonetheless, the Monetary Board emphasized that prospects for domestic economic activity are likely to remain firm owing to buoyant consumer and business sentiment and ample liquidity,” it added.
The benchmark policy rate remains at 3%.