Philippines Keeps Benchmark Rate Steady Amid Slow Recovery

(Bloomberg) -- The Philippine central bank kept its key interest rate unchanged Thursday as it watches whether previous easing steps boost the economy’s slow recovery from the coronavirus pandemic.

Bangko Sentral ng Pilipinas left the benchmark rate at 2%, as predicted by all 16 analysts in a Bloomberg survey.

The Philippine economy is facing a difficult recovery despite the further easing of movement restrictions and a decline in new infections from the August peak. Bangko Sentral has been at the forefront of virus-relief efforts, cutting its key rate by a total of 200 basis points this year and deploying credit relief and other liquidity measures.

While economic managers expect the economy to record positive growth next year, analysts say that’s mostly due to the comparison with this year’s sharp contraction. Consumer sentiment remains negative this quarter and the size of the workforce shrank in October.

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