"The Monetary Board will continue to adopt a neutral policy stance by keeping the BSP’s policy rates at their current levels - overnight RRP rate at 9.0 percent and RP rate at 11.0 percent. Meanwhile, the BSP’s new tiering policy on its overnight borrowing facility will continue to be in effect."
"The BSP’s neutral policy stance reflects the view that present levels of the interest rate are supportive of the primary goals of monetary policy in reducing inflation and maintaining the broad stability of the peso."
"While the series of policy rate cuts and the gradual reduction of reserve requirements implemented by the BSP during the first seven months of the year helped bring down interest rates, lending activities of banks continues to be weak. The BSP’s recent overnight borrowing policy is an attempt to further encourage banks to explore other more productive uses for their funds such as extending credit to the business sector rather than parking their funds with the BSP."
"The low inflation of 5.7 percent for July as well as the substantial overperformances in reserve money and base money continue to provide the monetary authorities with greater flexibility to pursue a more relaxed policy stance. But the recent developments in the financial market and the expected effects of the recent weather shocks require that the monetary authorities pause from the relatively easy monetary stance it took since the start of the year. This is to allow them time to assess more recent trends on domestic credit, inflation, and exchange rate."