NextGen Day

According to BSP Governor Felipe Medalla on Monday, changes in the inflation rate now count more heavily than the Federal Reserve’s major rate choices in determining the BSP’s (Bangko Sentral ng Pilipinas) policy rate decisions.

He told journalists in an interview that “our inflation targets are largely what drive us.”

The country’s inflation rate continued to slow down, with the number for May 2023 standing at 6.1 percent after reaching a 14-year high in January.

In the first five months of this year, the average level was 7.5 percent.

According to Medalla, inflation is expected to report monthly rates under target as early as September of this year.

At its meeting in May last year, the Monetary Board (MB), which sets policy for the BSP, opted to keep the key interest rates at the current level.

Even though the Federal Reserve maintained its benchmark interest rates unchanged last week, Medalla claimed that this “sent a signal that they are still quite concerned.”

That implies that further rises cannot be ruled out, he added.

Although Medalla stated that the BSP need not follow the Fed, the Fed’s rate-hiking cycle’s stop is “a good reason to pause” once more for the BSP.

Medalla added that although the difference in interest rates between the BSP and the Fed has decreased from larger levels in the past to a current level of 100 basis points, market participants should not view this as a cause of weakening the peso.

He warned that the markets should refrain from thinking this way going forward since it “will be a self-fulfilling prophecy.”

Save/Share this story with QR CODE

---

Disclaimer

This article is for informational purposes only and does not constitute endorsement of any specific technologies or methodologies and financial advice or endorsement of any specific products or services.

📩 Need to get in touch?

📩 Feel free to Contact NextGenDay.com for comments, suggestions, reviews, or anything else.

---

We appreciate your reading. 😊Simple Ways To Say Thanks & Support Us:
1.) ❤️GIVE A TIP. Send a small donation thru Paypal😊❤️
Your DONATION will be used to fund and maintain NEXTGENDAY.com
Subscribers in the Philippines can make donations to mobile number 0917 906 3081, thru GCash.
3.) 🛒 BUY or SIGN UP to our AFFILIATE PARTNERS.
4.) 👍 Give this news article a THUMBS UP, and Leave a Comment (at Least Five Words).

---

AFFILIATE PARTNERS

World Class Nutritional Supplements - Buy Highest Quality Products, Purest Most Healthy Ingredients, Direct to your Door! Up to 90% OFF.
Join LiveGood Today - A company created to satisfy the world's most demanding leaders and entrepreneurs, with the best compensation plan today.

---