Financial News: Philippine Central Bank Cuts Interest Rate On Slowing

Philippine Central Bank Cuts Interest Rate On Slowing Inflation

06/19/2025 - 05:48:00 (RTTNews)

(RTTNews) - The Philippine central bank lowered its policy rate for the second time this year as the outlook for inflation moderated.

The Monetary Board of the Bangko Sentral ng Pilipinas decided to reduce the policy rate by 25 basis points to 5.25 percent.

Previously, the bank had reduced the rate by a quarter-point in April. The interest rates on the overnight deposit and lending facilities were adjusted to 4.75 percent and 5.75 percent, respectively.

The inflation outlook for this year was lowered to 1.6 percent from 2.4 percent. Meanwhile, forecasts for 2026 climbed marginally to 3.4 percent from 3.3 percent and for 2027 to 3.3 percent from 3.2 percent.

In May, headline inflation softened to 1.3 percent, which was the lowest since November 2019.

The board noted that uncertainty over US trade policy and the conflict in the Middle East caused deceleration in global economic activity, which would lead to a slower growth in the domestic economy.

An increase in oil prices together with electricity rate adjustments, and higher rice tariffs, would add to inflationary pressures.

"On balance, the Monetary Board sees the need for a more accommodative monetary policy stance," the board said.

For comments and feedback: contact editorial@rttnews.com

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS

U.S. Consumer Sentiment Reaches Five-Month High In July (02 hr(s), 41 min(s), 09 sec(s) ago)
(RTTNews) - After reporting a substantial rebound by U.S. consumer sentiment in the previous month ...Full Story»

U.S. Housing Starts Rebound More Than Expected In June (03 hr(s), 40 min(s), 09 sec(s) ago)
(RTTNews) - New residential construction in the U.S. rebounded by more than expected in the month ...Full Story»

U.S. Housing Starts Surge 4.6% In June, More Than Expected (04 hr(s), 46 min(s), 09 sec(s) ago)
(RTTNews) - New residential construction in the U.S. rebounded by more than expected in the month ...Full Story»

Italy Current Account Surplus Grows In May (06 hr(s), 49 min(s), 09 sec(s) ago)
(RTTNews) - Italy's current account surplus increased in May from the previous year, the Bank ...Full Story»

Eurozone Construction Output Falls 1.7% (07 hr(s), 10 min(s), 09 sec(s) ago)
(RTTNews) - Eurozone construction output declined at the fastest pace in nearly two-and-a-half yea ...Full Story»

Eurozone Current Account Surplus Surges (07 hr(s), 24 min(s), 09 sec(s) ago)
(RTTNews) - The euro area current account surplus increased sharply in May largely due to the rise ...Full Story»

Italy Construction Output Falls 1.4% (09 hr(s), 06 min(s), 09 sec(s) ago)
(RTTNews) - Italy's construction output decreased in May after recovering in the previous mont ...Full Story»

Malaysia GDP Growth Improves In Q2 (09 hr(s), 47 min(s), 09 sec(s) ago)
(RTTNews) - Malaysia's economic growth improved in the second quarter driven by strong domesti ...Full Story»