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Philippine central bank says to be no drastic change in monetary policy

Philippine central bank says to be no drastic change in monetary policy

FILE PHOTO: A logo of Bangko Sentral ng Pilipinas (Central Bank of the Philippines) is seen at their main building in Manila, Philippines March 23, 2016. REUTERS/Romeo Ranoco

MANILA : The Philippine central bank governor said on Monday there is no urgency to change policy rates, currently at record lows, as he vowed to support efforts to sustain the country's economic recovery.

The Southeast Asian nation's path to recovery is facing a renewed hurdle from a surge of coronavirus infections, partly driven by the Delta variant, prompting the government to impose tighter curbs that will restrict economic activity.

"We will continue to be patient and supportive of the efforts to sustain the recovery process," central bank Governor Benjamin Diokno told ANC news channel. "There will be no drastic change in current monetary policy."

The economic recovery remained fragile, Diokno said.

This year's growth target has been cut to 4.0per cent to 5.0per cent https://www.reuters.com/article/philippines-economy-idUSL1N2PP0IM, from 6.0per cent to 7.0per cent expected previously. But the downgrade was still a significant improvement from last year's record contraction of 9.6per cent. https://www.reuters.com/article/philippines-economy-gdp-idINL4N2M11V5?enowpopup

The central bank kept the rate on the overnight reverse repurchase facility at 2.0per cent for a sixth straight policy meeting on Aug. 12.

Monetary authorities, which review key rates every six weeks, will hold their next meeting on Sept. 23.

(Reporting by Neil Jerome Morales; Editing by Ed Davies)

Source: Reuters/vc

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