Philippine keeps rate at record low as economic outlook dims

* BSP keeps key rates steady, as widely expected

* BSP says inflation manageable, growth outlook uncertain

* BSP lifts inflation forecasts for 2021-2023 (Updates with analyst comment, paragraphs 9 and 10)

By Neil Jerome Morales and Karen Lema

MANILA, Sept 23 (Reuters) - The Philippine central bank kept interest rates at record lows on Thursday, looking past increasing inflation pressures to support an economy struggling with the fallout of recent COVID-19 curbs.

The Bangko Sentral ng Pilipinas (BSP) kept the rate on the overnight reverse repurchase facility PHCBIR=ECI at 2.0% for the seventh straight policy meeting, as widely expected in a Reuters poll, even as it increased its inflation forecasts for this year, 2022 and 2023.

The rates on the overnight deposit and lending facilities were kept at 1.5% and 2.5%, respectively.

BSP Governor Benjamin Diokno told a news briefing policy settings remained appropriate, with inflation pressures still manageable and the growth outlook uncertain. Inflation is running above the central bank's 2%-4% target range.

"The outlook for recovery continues to hinge on timely measures to prevent deeper negative effects on the Philippine economy," he said.

The Philippine economy came out of a recession Link in the second quarter but the reimposition of strict lockdown measures Link from July to mid-September has clouded the outlook.

Indeed, the government cut its 2021 growth target in August to 4.0% to 5.0%, from 6.0% to 7.0% previously.

Some of those curbs have since been eased, with the Manila capital region shifting away from wide-scale lockdowns to localised ones from Sept. 16 as it tries to contain the virus while allowing some businesses to resume operations.

"The economy remains very weak, which suggests policy will need to remain loose for some time," said Alex Holmes, an economist at Capital Economics.

He expected no further rate cuts but also believed the BSP would not raise rates until 2023 despite elevated inflation, which accelerated to 4.9% in August, its highest in nearly three years.

The BSP raised its average inflation forecasts to 4.4% from 4.1% for this year, 3.3% from 3.1% for 2022, and 3.2% from 3.1% for 2023.
Writing by Enrico Dela Cruz; Editing by Ana Nicolaci da Costa and Giles Elgood

免責聲明: XM Group提供線上交易平台的登入和執行服務,允許個人查看和/或使用網站所提供的內容,但不進行任何更改或擴展其服務和訪問權限,並受以下條款與條例約束:(i)條款與條例;(ii)風險提示;(iii)完全免責聲明。網站內部所提供的所有資訊,僅限於一般資訊用途。請注意,我們所有的線上交易平台內容並不構成,也不被視為進入金融市場交易的邀約或邀請 。金融市場交易會對您的投資帶來重大風險。


本網站的所有XM和第三方所提供的内容,包括意見、新聞、研究、分析、價格其他資訊和第三方網站鏈接,皆爲‘按原狀’,並作爲一般市場評論所提供,而非投資建議。請理解和接受,所有被歸類為投資研究範圍的相關内容,並非爲了促進投資研究獨立性,而根據法律要求所編寫,而是被視爲符合營銷傳播相關法律與法規所編寫的内容。請確保您已詳讀並完全理解我們的非獨立投資研究提示和風險提示資訊,相關詳情請點擊 這裡查看。

我們運用 cookies 提供您最佳之網頁使用經驗。更改您的cookie 設定跟詳情。

風險提示: 您的資金存在風險。杠杆商品可能不適合所有客戶。 請詳細閱讀我們的風險聲明