MANILA: The Philippine central bank left its benchmark interest rate unchanged for the first time in six meetings as inflation pressures eased and the peso strengthened.
The overnight reverse repurchase rate was held at 4.75%, Bangko Sentral ng Pilipinas said in a statement in Manila on Thursday, marking the first pause after 175 basis points of increases since May.
Inflation slowed to 6% in November from 6.7% in October. Oil and rice prices have eased, while a transport fare hike was rolled back earlier in December.
The central bank’s target is for annual inflation to average 2% to 4% until 2020
While the peso is still down more than 5% against the dollar this year, it’s recovered recently to be among the best performers in emerging markets this quarter
President Rodrigo Duterte is boosting spending on roads and railways to help shield the economy from the impact of rising prices and higher borrowing costs. Growth eased to 6.1% in the third quarter, the weakest since 2015.