MANILA, Aug 28 — The Philippine central bank has decided to reduce its target reverse repurchase rate by 25 basis points to five per cent, and interest rates on the overnight deposit and lending facilities were adjusted to 4.5 per cent and 5.5 per cent, respectively, reported Xinhua.
The Bangko Sentral ng Pilipinas (BSP) said that the inflation outlook "is broadly unchanged". The inflation forecast for 2025 settled at 1.7 per cent. Forecasts stand at 3.3 per cent for 2026 and at 3.4 per cent for 2027.
“Inflation expectations also remain well-anchored. Meanwhile, possible electricity rate adjustments and higher rice tariffs could raise inflationary pressures over the policy horizon," it said in a statement today.
The BSP said its monetary board observed that domestic demand has remained firm.
"However, the impact of US policies on global trade and investment continues to weigh on global economic activity. This could temper the outlook for the Philippine economy," it said.
Emerging risks will continue to require close monitoring. The BSP's monetary board will determine a monetary policy response based on an evolving outlook for inflation and growth.
