MANILA 鈥 The Philippine central bank said on Thursday that it had decided to keep its policy rate at 4.25%, adding that it will act as needed to maintain price stability and address likely second-round effects.
The Bangko Sentral ng Pilipinas (BSP), which was not scheduled to review interest rates until April 23, said mounting risks to inflation require sustained vigilance.
In a statement it said inflation this year was expected to breach the 4.0% ceiling but move back toward the tolerance range by 2027.
鈥淎s a data-driven monetary authority, and in light of fast-changing developments and uncertain economic conditions, the Monetary Board met today and decided to maintain the policy rate at 4.25%,鈥 it said.
鈥淥ver the near term, the Monetary Board sees upside risks to inflation as largely supply-driven, for which monetary policy has limited effectiveness. At the same time, the BSP sees continued weak economic growth in 2026. To raise the policy rate at this time would delay the recovery.鈥 鈥 Reuters
