Filipino Central Bank Interest Rate Cut – Currency Thoughts

Filipino Central Bank Interest Rate Cut

October 9, 2025

The overnight Filipino deposit rate was cut today by 25 basis points further to 4.75% in a move that had not been predicted by analysts. This was the seventh such reduction since August 2024 and was made in spite of a near doubling of on-year consumer price inflation in the Philippines from 0.9% in July to 1.7% last month. Even at 1.7%, that’s a tad below the 2-4% inflation target range. Defending today’s action, a released explanation by the Central Bank of the Philippines makes the following points:

The outlook for inflation is benign and well within the target range. Inflation expectations remain well-anchored. the risks to the inflation outlook are limited as price pressures are expected to ease. The outlook for domestic economic growth has weakened. The favorable inflation outlook and moderating domestic demand provide room to further support economic activity.

Copyright 2025, Larry Greenberg. All rights reserved. No secondary distribution without express permission.

Tags: Bangko Sentral ng Pilipinasss

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on Thursday, October 9th, 2025 at 6:57 am and is filed under Central Bank Watch.
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