Tuesday, January 6, 2015

Interest rates to stay low as inflation slows


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INTEREST rates will likely be kept near their record lows in the coming months to give the real economy more breathing room to grow, monetary authorities said yesterday.


This followed the release of government data this week that showed consumer prices in December were at the most stable in more than a year as cheaper fuel offset the effects of higher food prices and as the resolution of Manila’s port congestion brought down input costs for producers.


As a result, inflation in 2014 averaged near the midpoint of monetary authorities’ target for the year. This marked the sixth consecutive year that consumer prices rose within target.


“Lower international oil prices should continue to counterbalance pending hikes in transport and utility charges,” Bangko Sentral ng Pilipinas (BSP) Governor Amando M. Tetangco Jr. said.



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