FINANCE secretary Benjamin Diokno yesterday said the Bangko Sentral ng Pilipinas (BSP) could raise the benchmark interest rate by 25 basis points (bps) or keep it steady on its next meeting this month.
The BSP has so far increased the overnight borrowing rate by a cumulative 400 bps to 6 percent since last year to tame rising inflation and to keep the interest rate differential with the US Federal Reserve.
“There’s even a likelihood that there may be a halt or steady. We will hold it for a while knowing that there are so many uncertainties. Not to hike or to hike by 25 bps,” Diokno, who is a member of the Monetary Board, said.
He said he also expects the US Federal Reserve to be less aggressive during its meeting this week. BSP Gov. Felipe Medalla said he expects the US Fed to raise interest rates by about 25 bps.
Diokno said the government also expects inflation to ease to within the 2 percent to 4 percent target on a monthly basis later this year.
Inflation remained elevated at 8.6 percent in February. Officials have estimated the yearly average inflation could revert to within the target of 2 percent to 4 percent in 2024. (ABS-CBN News)
