THE low inflation environment in the Philippines as affirmed by April’s 2.2 percent rate may prompt the central bank to keep its policy stance steady while it studies the merits of adopting a similar term auction facility (TAF) as that of the US Federal Reserve, when it addressed banks’ aversion to risk during the last global financial crisis.

The Monetary Board (MB) of the Bangko Sentral ng Pilipinas (BSP) is set to hold its next policy meeting on May 14, during which the board may discuss the possibility of introducing the program to the local financial markets, an analyst at the Bank of the Philippine Islands (BPI) said.

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