 |
 |
|
|
       |
BSP keeps key rates unchanged |
|
By Donnabelle L. Gatdula
The Philippine Star 08/26/2005 The Bangko Sentral ng Pilipinas (BSP) left its key interest rate unchanged for a fifth straight policy meeting yesterday, keeping borrowing costs low to spur growth as high energy costs erode disposable incomes at home and abroad. BSP kept the rate at which it borrows overnight from commercial lenders at seven percent, BSP Governor Amando Tetangco Jr. said. "We want to ensure there is adequate liquidity," Tetangco said. "There are contractionary risks due to the higher oil prices and we don’t want to exacerbate them." The Philippines needs faster economic growth to create jobs and improve the lives of its citizens, about a third of whom live on less than 60 US cents a day. Budget Secretary Romulo Neri this week said growth may slow to five percent this year, less than the government’s goal for an expansion of at least 5.3 percent, as high oil prices curb spending. Consumer spending rose a seasonally adjusted 0.8 percent in the first quarter from the fourth, its smallest gain in threeyears, and corporate investment fell from a year earlier for the first time since the second quarter of 2003. The cost of crude oil in New York reached a record $68 a barrel yesterday and has jumped more than 50 percent this year. The increase in crude costs has driven pump prices higher in the Philippines and made public transportation more expensive, stoking inflation, which stayed at 8.5 percent in the four months through May, 0.1 percentage point less than the six-year high recorded in December. Improved harvests have since helped make food cheaper, bringing the rate down to an 11-month low of 7.1 percent in July. The BSP expects inflation to slow to 6.5 percent in December, Deputy Governor Diwa Guinigundo said earlier. The Federal Reserve on Aug. 9 raised its benchmark interest rate a quarter point to 3.5 percent, the 10th increase since June 2004. The Fed restated a plan to carry out further increases at a "measured" pace. |
 |
Circular Letters/Memoranda |
|
Speeches/ Presentations |
|
Photo Gallery |
|
2008 CFI Awards |
|
Rural Banking Week Celebration Golf Tournament |
|
FMMRB Disclaims the White Paper Being Circulated |
|
Client Satisfaction Survey for Licensing Management System of the Supervision and Examination Sector |
|
Financial Reporting Package 2008 |
|
BSP releases regulations on liquidity, market risk weighting |
