Philippines Central Bank Keeps Rates Steady to Guard Against Inflation

By Kosaku Narioka

The Philippine central bank held its policy rate steady to mitigate upside risks to inflation following a recent pickup in price pressures.

Bangko Sentral ng Pilipinas Gov. Eli Remolona said Thursday that the central bank kept its benchmark overnight reverse repurchase rate unchanged at 6.50%. It also maintained its benchmark lending rate at 7.00%.

All nine economists polled by The Wall Street Journal had expected that the central bank would stand pat.

The country's consumer-price index in April rose 3.8% from a year earlier, up from a 3.7% increase in March. That compares with the central bank's inflation target range of 2%-4%.

Upside risks to inflation could keep the central bank from cutting rates any time soon, some economists say.

The country's gross domestic product rose 5.7% in the first quarter from the same period a year earlier, thanks to broad improvements led by services and industry sectors, government data showed earlier this month.

Write to Kosaku Narioka at kosaku.narioka@wsj.com

(END) Dow Jones Newswires

May 16, 2024 03:30 ET (07:30 GMT)

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