Financial News: Philippines Cuts Policy Rate To 5.75%

Philippines Cuts Policy Rate To 5.75%

12/19/2024 - 05:36:00 (RTTNews)

(RTTNews) - The Philippine central bank decided to reduce its benchmark rate by 25 basis points on Thursday as inflation is projected to remain within the target range and, hinted at further policy easing next year.

The Monetary Board of the Bangko Sentral ng Pilipinas lowered the target reverse repurchase rate to 5.75 percent from 6.00 percent. This was the third consecutive reduction.

The interest rates on the overnight deposit and lending facilities were accordingly lowered to 5.25 percent and 6.25 percent, respectively.

The BSP projected inflation to stay within the target range over the policy horizon. Inflation outlook for next year was raised marginally to 3.4 percent from 3.3 percent, while the outlook for 2026 was retained at 3.7 percent. The BSP board observed that domestic demand is likely to remain firm but subdued. Easing inflation and improving labor market conditions are forecast to support domestic spending.

"On balance, the within-target inflation outlook and well-anchored inflation expectations continue to support the BSP's shift toward less restrictive monetary policy," the bank said.

"Looking ahead, the Monetary Board will maintain a measured approach to monetary policy easing to ensure price stability conducive to sustainable economic growth and employment," the bank added.

Capital Economics economist Harry Chambers said a sharp fall in inflation over the last year has provided the central bank room to continue policy easing and it is expected to cut rates further over the coming months.

Chambers said a strong economy gives the BSP a platform to keep rate cuts gradual. The economist expects a further 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. Consumer Sentiment Improves In Line With Preliminary Estimate In December (01 hr(s), 24 min(s), 53 sec(s) ago)
(RTTNews) - The University of Michigan released a report on Friday showing consumer sentiment in t ...Full Story»

U.S. Consumer Prices Inch Higher In November, Annual Growth Accelerates Slightly Less Than Expected (01 hr(s), 55 min(s), 53 sec(s) ago)
(RTTNews) - Consumer prices in the U.S. crept slightly higher in the month of November, according ...Full Story»

Slovenia Producer Prices Fall At Slower Rate (02 hr(s), 09 min(s), 53 sec(s) ago)
(RTTNews) - Slovenia's producer prices continued their declining trend in November, figures fr ...Full Story»

Croatia Jobless Rate Rises To 5.0% (02 hr(s), 24 min(s), 53 sec(s) ago)
(RTTNews) - Croatia's unemployment rate increased for the second straight month in November, f ...Full Story»

Denmark Economy Grows Less Than Estimated In Q3 (02 hr(s), 42 min(s), 53 sec(s) ago)
(RTTNews) - The Danish economy expanded less than initially estimated in the third quarter, the ...Full Story»

U.S. Consumer Prices Inch Up Slightly Less Than Expected In November (02 hr(s), 57 min(s), 53 sec(s) ago)
(RTTNews) - Consumer prices in the U.S. crept slightly higher in the month of November, according ...Full Story»

Sweden Producer Prices Rise, Retail Sales Growth Remains Stable (03 hr(s), 05 min(s), 53 sec(s) ago)
(RTTNews) - Producer prices in Sweden increased for the first time in three months in November, wh ...Full Story»

UK Retail Sales Rise Less Than Forecast (03 hr(s), 17 min(s), 53 sec(s) ago)
(RTTNews) - UK retail sales grew for the first time in three months in November but the pace of ex ...Full Story»