Financial News: Philippine Central Bank Unexpectedly Retains Policy Rates

Philippine Central Bank Unexpectedly Retains Policy Rates

02/13/2025 - 04:40:00 (RTTNews)

(RTTNews) - The Philippine central bank unexpectedly left its interest rates unchanged after cutting it for three straight times amid heightened uncertainty over US trade policy. The Monetary Board of the Bangko Sentral ng Pilipinas decided to hold the target reverse repurchase rate at 5.75 percent.

The interest rates on the overnight deposit and lending facilities were kept unchanged at 5.25 percent and 6.25 percent, respectively.

Inflation forecast for 2025 was lifted to 3.5 percent from 3.4 percent, while the projection for 2026 was retained at 3.7 percent.

The board said uncertainty about the outlook for inflation and growth warrant keeping monetary policy settings steady.

Policymakers await further developments on US trade policies before deciding on the timing and magnitude of further reductions in the policy rate. Looking ahead, the BSP said it anticipates continuing its measured shift to less restrictive monetary policy settings, even as previous policy adjustments further work their way through the economy.

Today's decision represents a pause, rather than a halt to the easing cycle, Capital Economics' economist Gareth Leather said.

As the economy continued to grow strongly in the fourth quarter of 2024, there is little need for aggressive rate cuts, he noted. The economist expects a total of 100 basis points of cuts in 2025.

For comments and feedback: contact editorial@rttnews.com

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS

U.S. Producer Prices Rise Slightly More Than Expected In January (59 min(s), 49 sec(s) ago)
(RTTNews) - Following yesterday's hotter than expected consumer price inflation data, the Labo ...Full Story»

U.S. Weekly Jobless Claims Dip Slightly More Than Expected (01 hr(s), 05 min(s), 49 sec(s) ago)
(RTTNews) - First-time claims for U.S. unemployment benefits fell by slightly more than expected i ...Full Story»

UK Economy Unexpectedly Returns To Growth (01 hr(s), 11 min(s), 49 sec(s) ago)
(RTTNews) - The U.K. economy logged a surprise expansion in the fourth quarter of 2024, but the mi ...Full Story»

Brazil Retail Sales Fall 0.1% (01 hr(s), 37 min(s), 49 sec(s) ago)
(RTTNews) - Brazil's retail sales decreased unexpectedly at the end of the year, though slight ...Full Story»

Hungary Industrial Production Falls As Estimated (02 hr(s), 53 min(s), 49 sec(s) ago)
(RTTNews) - Hungary's industrial production declined at the steepest pace in five months as in ...Full Story»

UK Housing Market Likely To Pick Up Later This Year: RICS (03 hr(s), 14 min(s), 49 sec(s) ago)
(RTTNews) - The UK housing market is set to pick up later this year despite demand and sales remai ...Full Story»

Turkey Current Account Deficit Widens (03 hr(s), 52 min(s), 49 sec(s) ago)
(RTTNews) - Turkey's current account deficit increased notably in the final month of 2024 from ...Full Story»

Eurozone Industrial Output Falls More Than Expected (04 hr(s), 11 min(s), 49 sec(s) ago)
(RTTNews) - Eurozone industrial production registered a bigger-than-expected decline in December o ...Full Story»