The Bangko Sentral ng Pilipinas (BSP), the Philippine central bank, has cut its benchmark interest rate by 25 basis points to 6%, marking the second rate reduction this year. This decision follows the slowdown in inflation, giving the central bank room for further easing. The move aligns with expectations, as 25 out of 26 economists surveyed by Bloomberg had anticipated the rate cut.
The central bank initiated its easing cycle in August, with BSP Governor Eli Remolona expressing a preference for gradual quarter-point cuts rather than larger reductions unless the country's economic growth significantly weakens.
In September, Philippine inflation slowed to a four-year low of 1.9%, bringing the nine-month average to 3.4%, which falls within the BSP’s target range. The economy grew by 6.3% from April to June, positioning the Philippines as one of the fastest-growing economies in Asia.
This rate cut aims to support sustained economic growth while maintaining stable inflation levels.
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