Filipino Central Bank Rate Structure Lowered by 25 Basis Points
August 8, 2019
Monetary officials skipped only one review before resuming their easing. The benchmark rate, which is the reverse repo, was cut by 25 basis points to 4.25%, and the overnight deposit and lending rates were cut to 3.75% and 4.75%, respectively. This is the second reduction in this cycle after an initial one in May. A statement explaining today’s action cites a “benign” inflation outlook in which both actual and expected inflation have slipped. The on-year rise in consumer prices is now below the 3% target mid-point, and the global growth environment gives scant reason to expect an upturn. With inflation down and amid external uncertainties, today’s easing was characterized as a “pre-emptive move against the risks associated with weakening global growth.” Prior to the current easing cycle, the reverse repo had been raised from 3.0% to 4.75% in a series of five moves between May and November of last year.
Copyright 2019, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
ShareThis
