MANILA: The Philippine central bank is likely to keep monetary policy unchanged on Thursday after inflation eased last month, a Reuters poll showed.
Nine of the 11 respondents in the poll expect the central bank to keep both the overnight borrowing rate at 4.0 percent on Thursday, when it meets to review policy. Eight of the 11 forecast no change that day in the special deposit account rate, now at 2.5 percent. Three project a 25 basis point hike.
Three poll participants expect the overnight rate to be raised by the end of 2014.
The central bank tightened policy for a fifth time in a row on Sept. 11, raising both the overnight borrowing rate and SDA rate by 25 basis points each.
After hitting a five-month low of 4.4 percent in September, annual inflation is expected to cool further, according to the central bank, easing the pressure on policymakers to keep their foot on the monetary brake pedal.
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