Bank sees no changes in BSP rates

By on August 4, 2015

Facade of Banko Sentral  ng Pilipinas / Wikipedia Photo
Facade of Banko Sentral ng Pilipinas / Wikipedia Photo

MANILA — The ING Bank eyes no changes on the key policy rates of the Bangko Sentral ng Pilipinas (BSP) next week, following lower consumer prices.

Joey Cuyegkeng, ING Bank senior economist said in a report for the Philippine Star that the BSP is expected to keep its rates unchanged.

“Inflation is expected to creep higher toward the end of the year. We expect average inflation rate of 1.7 percent for 2015 and 2.8 percent in 2016,” he said.

He also said that the investment bank eyes inflation at 0.9 percent in July from 1.2 percent in June before increasing toward the end of the year.

“Financial stability is likely to be maintained since economic growth would improve from the disappointing first quarter GDP growth of 5.2 percent,” he said.

While financial markets are likely to be volatile as investors and markets adjust to different views, the volatility may not necessarily affect the stability of the Philippine economy.

“But we do not think the volatility would lead to an unstable Philippine financial sector and economy,” Cuyegkeng said.