"No change in INTEREST rates," BSP says

Rappler.com: The Bangko Sentral ng Pilipinas (BSP) decided to maintain the country's interest rates. But due to rising oil prices, higher liquidity in the financial system, as well as the weaker Philippine peso, the central bank hiked its inflation forecast for 2018.

BSP Governor Nestor Espenilla Jr said the Monetary Board retained the interest rate on the overnight reverse repurchase facility at 3%.

The BSP board also maintained the corresponding interest rates on the overnight lending and deposit facilities based on the assessment that the inflation outlook remains manageable.
Espenilla added that the reserve requirement ratio also stayed unchanged at 20%.

Despite the faster rise in consumer prices, the BSP chief said monetary authorities believe the future inflation path will stay within the 2% to 4% target between 2017 and 2019.

Inflation, the movement of prices of goods and services, rose to a 3-year high of 3.5% in October this year, from 3.4% in September.

This brought the average inflation to 3.2% in the 1st 10 months of 2017.

"The balance of risks to the inflation outlook continues to lean toward the upside due to higher crude oil prices," Espenilla said.

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