The Philippines held its benchmark interest rate for a fourth straight meeting on Thursday as an anticipated acceleration in economic growth reduces the need for stimulus.
Bangko Sentral ng Pilipinas (BSP) kept the rate it pays lenders for overnight deposits at 4%, it said in Manila, as predicted by all 13 economists surveyed by Bloomberg. Policy makers also held the rate on so-called special deposit accounts at 2.5%, as forecast by all five analysts.
The Philippines is one of the few holdouts this year amid more than two dozen central banks from Canada to China that have eased monetary policy as price pressure wanes. The Southeast Asian nation’s economy may grow as much as 8% in 2015, while inflation may be slower than previously estimated, deputy governor Diwa Guinigundo said.
“The central bank decision was based on their expectations that inflation would be well-anchored,” said Marc Bautista, head of research at Metropolitan Bank & Trust Co in Manila. “They’re also trying to avoid contributing to volatility. BSP is likely to stay put for the rest of the year.”
The peso fell 0.2% to 44.840 against the dollar at the close before the decision. It is the best performer in the past 12 months among 24 emerging-market currencies tracked by Bloomberg. The benchmark stock index gained 0.4% to a record high.
Consumer prices rose 2.5% in February from a year earlier. The central bank on Thursday lowered its forecast for 2015 to 2.2% from 2.3%, while maintaining its estimate for next year at 2.5%.
The new forecasts are supported by well-anchored expectations, even as uneven global growth poses upside risks to commodity prices, Mr Guinigundo said.
Domestic demand conditions remain robust, and higher public spending will support the economy, the central bank said. The economy doesn’t need additional stimulus, and the monetary authority won’t waste any pre-emptive moves, Mr Guinigundo said.