RHB | Philippines | Policy Rates Raised Again, Signalling A Stronger Policy Response To Curb Inflationary Expectations

Economic Research	12 Sept 2014
Philippines
Economic Highlights
Policy Rates Raised Again, Signalling A Stronger Policy Response To Curb Inflationary Expectations The Bangko Sentral ng Pilipinas’(BSP) Monetary Board, for the second consecutive meeting, raised the overnight borrowing and lending rates by another 25 basis points to 4.00% and 6.00% respectively on 11 September (see Figure 1). In addition, it also hiked the special deposit account (SDA) facility accordingly to 2.50%, from 2.25% previously while leaving the reserve requirement unchanged at 20%. This was in line with consensus and our expectations of another 25 basis point hike in policy rates in either the September or October meeting. Economist:  Peck Boon Soon  | +603 9280 2163