Philippine central bank cuts key rate for third time in a row

Published 28/08/2025, 08:24
Philippine central bank cuts key rate for third time in a row

Investing.com -- The Philippine central bank reduced its key policy rate by 25 basis points to 5.0% on Thursday, marking its third consecutive rate cut.

The Bangko Sentral ng Pilipinas (BSP) maintained its inflation outlook, projecting 1.7% for 2025, 3.3% for 2026, and 3.4% for 2027, describing its inflation perspective as "broadly unchanged."

Despite the rate reduction, the central bank cautioned about potential inflationary pressures from possible electricity and rice price increases.

The BSP emphasized that emerging risks would require continued monitoring.

In its statement, the central bank affirmed its commitment to economic stability, saying: "Going forward, the BSP will safeguard price stability by ensuring monetary policy settings are conducive to sustainable economic growth and employment."

The decision to lower rates aligns with market expectations and continues the BSP’s recent easing cycle.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.