Interest Rate Cut in the Philippines
February 19, 2026
There has been another interest rate cut at the Central Bank of the Philippines, the sixth in a row for this monetary authority that reviews its policy stance on a bi-monthly basis. At 4.25%, the new rate level will be back to its lowest level since November 2022 and 225 basis points below the 6.5% peak maintained from October 2023 until August 2024. Today’s rate reduction was done in spite of an 18-month high of 2.8% in Filipino core consumer price inflation and a slight uptick as well last month in overall CPI inflation. According to a released statement, inflation “forecasts have risen slightly for 2026 due mainly to supply-side pressures,” but is seen likely”to return close to the 3 percent target by 2027.” Moreover, inflation expectations are well-anchored, and both GDP growth and domestic demand have under-performed officials’ forecasts.
Copyright 2026, Larry Greenberg. All rights reserved.
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