Philippines, Indonesia hold bank rates steady

December 17, 2020

MANILA-- As anticipated, the Bangko Sentral ng Pilipinas (BSP) has kept its overnight reverse repurchase rate (RRP) unchanged at 2.00%. Sufficient liquidity in the economy, benign inflation outlook and emerging signals of economic recovery were factored into today's rate decision, according to analysis by ANZ Bank.

Bank Indonesia (BI) also today kept its policy rate unchanged at 3.75% as expected. ANZ said the central bank remains of the view that the economy is gradually recovering.

"As things stand, we are not pencilling in further rate cuts," ANZ said, "although we acknowledge another opportunistic cut cannot be ruled out should the IDR rally gain stronger momentum." (ATI).