BSP holds off rate hike anewThe central bank’s overnight reverse repurchase facility was maintained at 6.25 percent, while interest rates on the overnight deposit and lending facilities were retained at 5.75 and 6.75 percent, respectively. The central bank’s overnight reverse repurchase facility was maintained at 6.25 percent, while interest rates on the overnight deposit and lending facilities were retained at 5.75 and 6.75 percent, respectively. However, the BSP chief admitted that the lingering upside risks to the inflation outlook also warrant continued vigilance against potential second-round effects. Medalla reiterated that the country’s monetary stance would now depend on domestic inflation instead of the actions of the US Fed. “Our interest rates should be driven by domestic inflation concerns, not by what the US does.

Source: Philippine Star June 22, 2023 17:29 UTC