Central Bank of the Philippines Cuts Key Rates By Just 25 Basis Rates

March 5, 2009

Analysts had expected a third consecutive 50-basis point cut following moves on December 18th and January 29th, but officials reduced their overnight borrowing and lending rates instead by 25 basis points to 4.75% and 6.75%.  This less aggressive gesture was taken in light of several threats to inflation emanating from possibly higher oil prices, peso depreciation, higher utility rates and the potential for higher agricultural commodity prices.  The Monetary Policy Board issued a statement and is scheduled to meet next on April 13th.

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


Comments are closed.