RP can keep policy rates unchanged, BSP says

It is possible for Philippine monetary authorities to keep policy rates unchanged at record lows this year despite the stronger-than-expected economic growth in the second quarter and the benign inflation outlook. Bangko Sentral ng Pilipinas Gov. Amando Tetangco Jr. said in an interview with reporters that the Monetary Board could keep its policy rates for the rest of the year in the absence of major developments that can stoke inflation. "Yes it is possible provided that there are no major events that can lead to a significant change in the inflation outlook." On Thursday, the BSP kept its key rates at record lows for the 10th successive meetings since July last year. Despite the higher-than-expected real GDP growth of 7.9 percent for the second quarter and the revised first quarter real GDP growth of 7.8 percent in the first quarter, the BSP maintained the overnight borrowing rate at 4 percent and the overnight lending rate at 6 percent. —VS, GMANews.TV