Philippine Central Bank Rates Cut 25 Basis Points As Expected

May 28, 2009

The key borrowing rate of Bangko Sentral ng Pilipinas was cut to 4.25% from 4.5% today.  Such had earlier been reduced by 50 basis points each last December 18 and January 29 and by 25 bps on March 5 and April 16.  The key lending rate also got reduced by 25 bps to 6.25%.  Officials released a statement acknowledging the lessening severity of the global and domestic recessions but accentuating the downside risks to the forecast.  Earlier today, real GDP was reported to have dropped 2.3% last quarter, most in two decades.  On-year growth in 4Q08 was revised down to 2.9% from 4.5% reported initially and reported to have decreased to only 0.4% in the first quarter of this year.  Officials left the door open to the possibility of further interest rate cuts.

Copyright 2009 Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.

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