The Monetary Board (MB) has decided yesterday to reduce the Bangko Sentral ng Pilipinas (BSP)’s key policy interest rates by 25 basis points to 4.25 percent for the overnight borrowing or reverse repurchase (RRP) facility and 6.25 percent for the overnight lending or repurchase (RP) facility, effective immediately.
The interest special deposit accounts (SDAs) were also reduced accordingly.
The MB’s decision is based on its assessment that the inflation outlook remains comfortably within the target range, with expectations well-anchored.
Latest baseline forecasts indicate that average annual inflation rates are likely to fall within the lower half of the 3 to 5 percent target range up to 2013.
Pressures on global commodity prices are seen to continue to abate amid weaker global growth prospects. However, the impact of strong capital inflows on domestic liquidity and the effect of geopolitical tensions in the Mena region on global oil supplies will continue to pose upside risks to inflation.
At the same time, the MB considers the overall balance of global economic activity to be tipping toward a further slowdown. Although the US economy has been showing signs of improvement, it remains vulnerable to financial market volatility amid continued concerns about long-term fiscal sustainability.
Meanwhile, the Euro area economy is notably weaker with interlocking sovereign debt and banking problems weighing down on global sentiment. Amid these developments, the Philippine economy is likely to face external headwinds in 2012.
While the Philippine economy continues to expand, sustained domestic spending is expected to compensate for weaker external demand.
Given these considerations, the MB has concluded that the benign inflation outlook allowed some scope for a reduction in policy rates to help boost economic activity and support market confidence.
The BSP shall continue to monitor emerging demand and price developments to ensure that monetary policy settings remain supportive of non-inflationary economic growth.
September 18 –
International Equal Pay Day
“Increase wages now,
more than other cost items.
For widespread, practical equality!”
Invoke Article 33 of the ILO Constitution
against the military junta in Myanmar
to carry out the recommendations of the 2021 ILO Commission of Inquiry
against serious violations of protocols of
Forced Labour and Freedom of Association.
Accept the National Unity Government (NUG)
of Myanmar. Reject Military!
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October –
Monthly Observances:
Industry and Commerce Safety Month
National Statistics Month
Local Government Month
Consumer Welfare Month
Cooperative Month
National Quality and Productivity Improvement Month
National Health and Wellness Tourism Month
National Indigenous Peoples Month
Weekly Observances:
Week 1: Elderly Filipino Week
Week 2: National Health Education Week
Local Government Week
National Mental Health Week
October 17-23:
National Week for Overcoming Extreme Poverty
October 18 – 24:
United Nations Week
Last Week:
Nurses’ Week
Consumers’ Protection Week
Week of the 4th Sunday:
Barrio Farmers’ Week
Daily Observances:
First Monday (Oct 4): Universal Children’s Day i
n the Philippines
Oct 5: National Teachers’ Day
Oct 10: Local Government Day
Third Thursday (Oct 14): Conflict Resolution Day
Oct 21: Tenants’ Emancipation day
Oct 24: United Nations Day
Oct 29: National Indigenous People’s Thanksgiving Day
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