While the BSP has room to "preserve" monetary policy support for the economy, Diokno warned that a resurgence of COVID-19 infections could further dampen domestic demand and overall business and consumer confidence.
The Bangko Sentral ng Pilipinas (BSP) kept the rate on the overnight reverse repurchase facility at a record low of 2.0%, as predicted by all 13 economists in a Reuters poll.
While the BSP has dismissed the inflation uptick as "transitory", some economists have ruled out further policy easing this year and have raised the possibility of a rate hike.