MANILA — The Philippine central bank cut its benchmark rate by 25 basis points on Thursday, a sixth straight reduction that matched the expectations of most economists in a Reuters poll.
The move to lower the overnight reverse repurchase facility rate PCHBIR=ECI to 4.25% came after economic growth slowed to a near five‑year low of 3.0% last quarter.
The central bank said economic growth had been lower than expected due to weaker domestic demand.
“Latest indicators point to a recovery in the second half of the year, but growth will depend largely on how quickly confidence recovers,” it said in a statement.
The Philippines has cut this year’s growth target to 5% to 6% from 6% to 7% previously. The lackluster performance in 2025 has been blamed on a corruption scandal tied to infrastructure projects that slowed public spending and undermined consumer and investor confidence.
The central bank said the outlook for inflation remained manageable.
—Reporting by Karen Lema and Mikhail Flores; Editing by John Mair and David Stanway
