BSP urged to maintain key rate

The Bangko Sentral ng Pilipinas (BSP) should hold its benchmark interest rate steady despite a cooling economy and stable inflation, as further easing risks being perceived as a reactive attempt to shore up flagging confidence and currency stability, according to New York-based GlobalSource Partners Inc.

- By DERCO ROSAL

In a Dec. 22 commentary, GlobalSource economists Diwa Guinigundo and Wilhelmina Mañalac argued that while price pressures have stabilized, the current slowdown is increasingly driven by institutional factors and sentiment shifts that monetary policy is ill-equipped to address.