The Central Bank of the Philippines unexpectedly cut its benchmark interest rate by 25 bps to 6.25% during its August 2024 policy meeting, defying market expectations of holding the rate steady for the seventh consecutive period. This decision followed recent data showing that the country's economy expanded by 6.3% year-on-year in the second quarter of 2024, the fastest growth since the first quarter of 2023. Additionally, the annual inflation rate climbed to 4.4% in July 2024, the highest reading since October 2023 and compared to a three-month low of 3.7% in the previous month. Nonetheless, Governor Remolona emphasized that the inflation outlook was skewed to the downside for 2024 and 2025, prompting the rate cut. The BSP revised its inflation forecasts for 2024 and 2025 to 3.3% and 2.9%, respectively, from earlier forecasts of 3.1% for both years. The central bank also adjusted the interest rates on the overnight deposit and lending facilities to 5.75% and 6.75%, respectively. source: Bangko Sentral ng Pilipinas
The benchmark interest rate in Philippines was last recorded at 6.25 percent. Interest Rate in Philippines averaged 7.33 percent from 1985 until 2024, reaching an all time high of 31.00 percent in January of 1985 and a record low of 2.00 percent in November of 2020. This page provides the latest reported value for - Philippines Interest Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news. Philippines Interest Rate - data, historical chart, forecasts and calendar of releases - was last updated on September of 2024.
The benchmark interest rate in Philippines was last recorded at 6.25 percent. Interest Rate in Philippines is expected to be 6.50 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Philippines Interest Rate is projected to trend around 4.00 percent in 2025, according to our econometric models.
Philippines Interest Rate
In Philippines, interest rate decisions are taken by The Monetary Board of The Bangko Sentral ng Pilipinas (BSP). The official interest rate is the reverse repo rate (RR/P) which is the overnight borrowing rate. The central bank of the Republic of the Philippines is committed to promote and maintain price stability and provide proactive leadership in bringing about a strong financial system conducive to a balanced and sustainable growth of the economy.
| Actual | Previous | Highest | Lowest | Dates | Unit | Frequency | ||
|---|---|---|---|---|---|---|---|---|
| 6.25 | 6.50 | 31.00 | 2.00 | 1985 - 2024 | percent | Daily |
News Stream
Philippines Central Bank Delivers Surprise Cut
The Central Bank of the Philippines unexpectedly cut its benchmark interest rate by 25 bps to 6.25% during its August 2024 policy meeting, defying market expectations of holding the rate steady for the seventh consecutive period. This decision followed recent data showing that the country's economy expanded by 6.3% year-on-year in the second quarter of 2024, the fastest growth since the first quarter of 2023. Additionally, the annual inflation rate climbed to 4.4% in July 2024, the highest reading since October 2023 and compared to a three-month low of 3.7% in the previous month. Nonetheless, Governor Remolona emphasized that the inflation outlook was skewed to the downside for 2024 and 2025, prompting the rate cut. The BSP revised its inflation forecasts for 2024 and 2025 to 3.3% and 2.9%, respectively, from earlier forecasts of 3.1% for both years. The central bank also adjusted the interest rates on the overnight deposit and lending facilities to 5.75% and 6.75%, respectively.
2024-08-15
Philippines Central Bank Leaves Rate Steady
The Central Bank of the Philippines kept its benchmark interest rate unchanged at 6.5% for the sixth consecutive meeting in June 2024, in line with market expectations and maintaining its peak level since 2007, with the BSP noting that inflation is nearing the midpoint of its target range of 2% to 4%. In May 2024, the country's headline inflation continued its upward trend for the fourth consecutive month, peaking at 3.9%—the highest rate of the year, up from 3.8% in the previous month. Still, Governor Eli Remolona expressed confidence that inflationary pressures would ease in the latter part of the year. The BSP revised its inflation forecasts downward to 3.1% for both the current and next year, from earlier projections of 3.8% and 3.7%, respectively, aligning with its target range of 2% to 4% for both periods. Meanwhile, expectations for domestic output growth remain strong, consistent with medium-term trends, supported by favorable labor market conditions and robust net exports.
2024-06-27
Philippine Central Bank Holds Rate Steady as Expected
The central bank of the Philippines upheld its benchmark interest rate at 6.50% for the fifth consecutive meeting in May 2024, confirming market forecasts, and maintaining its highest level since 2007 amidst escalating inflationary pressures. In April 2024, the country's headline inflation climbed for the third consecutive month to 3.8%, a slight increase from the previous month's 3.7%, albeit lower than market expectations of 4.1%. Notably, this figure remained within the BSP's targeted range of 2% to 4%. However, risks to the inflation outlook persistently lean towards the upside. Nevertheless, BSP Governor Eli Remolona noted a subtle shift towards a less hawkish stance, indicating that the BSP could potentially lower interest rates as early as August. The central bank revised its inflation forecasts downward for the current year to 3.8% from 4%, while slightly raising next year's projection to 3.7% from 3.5%, in line with its target range of 2% to 4% for both years.
2024-05-16
