THE Bangko Sentral ng Pilipinas (BSP) said that the they will keep the policy rate at 16-year-highs for the fourth straight meeting, as it hiked its inflation forecast for the year.

This is the result of the meeting with the Monetary Board.

According to BSP governor Eli Remolona Jr. the MB has kept the target reverse repurchase (RRP) rate at 6.5%.

Likewise, they said that the overnight deposit rate remains at 6.0%, and the overnight lending facility rate at 7.0%.

This comes as the risk-adjusted inflation outlook was revised upward to 4.0% from the previous 3.9% forecast, falling at the upper band of the government’s 2.0% to 4.0% target range. The 2025 outlook was unchanged at 3.5%.

“The risks to the inflation outlook continue to lean toward the upside. Possible further price pressures are linked mainly to higher transport charges, elevated food prices, higher electricity rates, and global oil prices,” Remolona said.

“Potential minimum wage adjustments could also give rise to second-round effects,” he added.

The results of a survey released last week show that controlling inflation was the top concern of Filipinos across geographical areas and socio-economic classes.

In March, the inflation clocked in at 3.7%, faster than the 3.4% in the previous month.