Amid a sluggish pace of economic recovery, the Bangko Sentral ng Pilipinas (BSP) is likely to keep its key interest rates steady even if the inflation rate remains above targeted levels, said an economist at American banking giant JP Morgan.
“In our view, maintaining low borrowing costs for households and corporates alike will be key in shaping the demand recovery in the context of weak loan growth and, thus, the BSP will likely maintain its current accommodative stance as long as sentiment remains weak,” JP Morgan economist Nur Raisah Rasid said in a research note.
Rasid issued the commentary following the release of Philippine April trade data, which showed the trade deficit had …
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