MANILA — The Philippine central bank cut its key interest rate by 25 basis points (bps) to 6.0% on Wednesday, its governor said, reducing the overnight borrowing rate for a second straight meeting as expected.
Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona said the decision to cut rates was based on the central bank’s assessment that price pressures remained manageable.
All 23 economists polled by Reuters had expected the central bank to cut its target reverse repurchase rate PHCBIR=ECI by 25 bps, and a majority have forecast another quarter-point cut in December.
The cut took the target rate to its lowest since February 2023.
The BSP slightly owered its risk-adjusted inflation forecast for 2024 to 3.1% from 3.3% previously, but it raised the inflation estimates for 2025 and 2026 to 3.3% and 3.7% from 2.9% and 3.3%, respectively.
— Reporting by Neil Jerome Morales and Mikhail Flores; Editing by John Mair
