(March 26): The Philippine central bank maintained its benchmark interest rate in an off-cycle decision on Thursday.
“As a data-driven monetary authority, and in light of fast-changing developments and uncertain economic conditions, the monetary board met today and decided to maintain the policy rate at 4.25%,” Bangko Sentral ng Pilipinas said in a statement.
The central bank, at its February meeting, reduced borrowing costs by 25 basis points, bringing total reduction to 225 basis points in a bid to support economic recovery. The next rate-setting meeting was originally scheduled for April 23.
Concerns over the deepening war in Iran have driven the Philippine peso to a record low, past the key 60-per-dollar level, which could stoke imported inflation.
The Philippines relies heavily on fuel and food imports and is widely seen by economists as one of the more vulnerable in the region to inflation and growth risks triggered by the Mideast war.
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