Interest Rate Cut in the Philippines – Currency Thoughts
Interest Rate Cut in the Philippines
August 28, 2025
In the Philippines where on-year CPI inflation in July printed at a 69-month low of 0.9%, officials at Bangko Sentral ng Pilipinas cut their key interest rate by another 25 percentage points to a 33-month low of 5.0%. This expected move brings cumulative rate reduction over the past year to 150 basis points. Filipino inflation crested at 8.7% in January 2023. The current price pace is below the central bank’s medium-term target range of 2-4%, but officials don’t expect it to remain so. “The outlook for inflation is broadly unchanged. The inflation forecast for 2025 settled at 1.7 percent. The forecasts stand at 3.3 percent for 2026 and at 3.4 percent for 2027.” Officials continue to monitor the effect of U.S. trade and investment policies very carefully.
Copyright 2025, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
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