BSP likely to keep rates on hold, USD/PHP to trade towards 49 in coming weeks

The Philippine central bank is likely to stand pat today during its policy meeting. According to a Scotiabank research report, the BSP is anticipated to keep the overnight reverse repo facility rate and the overnight deposit facility rate on hold at 3 percent and 2.5 percent, respectively.

The decision to hold rates would be amidst strong domestic demand and manageable inflation environment. The Philippine central bank is likely to guarantee financial and price stability favorable to sustained economic growth in the future. The USD/PHP currency pair is expected to trade towards the 49 level in the weeks ahead, added Scotiabank.