"For the fifth consecutive week, the monetary board decided to maintain a neutral policy stance by leaving the BSP’s policy rates unchanged at their present levels - overnight RRP rate at 9.0 percent and RP rate at 11.0 percent. This is in line with the view that current levels of the interest rate are generally consistent with the primary objectives of monetary policy in reducing inflation and maintaining the broad stability of the peso."
"The successive policy rate cuts implemented by the BSP during the first seven months of the year resulted in a cumulative reduction of 437.5 basis points each for the RRP and RP rates. This substantial decline in the BSP’s policy rates, together with the gradual reduction of the total reserve requirement of banks to 12 percent from 17 percent at the beginning of the year, are expected to encourage more lending activities by the banking system."
"While the low inflation of 5.7 percent for July as well as the substantial overperformances in reserve money and base money will provide the monetary authorities with greater flexibility in conducting monetary policy, the recent pressure in the foreign exchange market as well as the expected effects of the recent weather shocks will require greater caution in the conduct of monetary policy."