The Bangko Sentral ng Pilipinas (BSP) is likely to keep its key interest rate unchanged for the rest of this year despite the disappointing pace of economic recovery amid a prolonged coronavirus (COVID-19) pandemic-induced recession.
This is according to Citi economist for the Philippines Nalin Chutchotitham, who projected that the BSP’s overnight borrowing rate would be kept at 2 percent until early next year, at the latest, even as demand-pulled inflation would likely stay subdued.
In a recent research note, Citi said it was expecting the BSP to look through the supply-side risks for now in favor of supporting economic recovery. “We doubt that the BSP would reduce its policy rate…
Keep on reading: BSP seen keeping interest rates unchanged for the rest of 2021