The Central Bank of the Philippines cut its benchmark interest rate by 25 bps to 4.5% during its final meeting of the year, marking the fifth straight reduction and bringing total cuts this year to 125 bps. The move aligns with market expectations and lowers borrowing costs to their lowest since October 2022, as a benign inflation outlook allows policymakers room to support growth. Inflation forecasts for 2026 and 2027 were slightly raised to 3.2% and 3.0%, remaining within the BSP’s 2%-4% target. The Monetary Board noted that domestic growth has weakened amid softer business sentiment, governance concerns, and lingering global trade uncertainty, though demand is expected to recover gradually as the effects of monetary easing and improved public spending take hold. The BSP also indicated that the easing cycle is nearing its end, with any additional cuts likely limited and guided by incoming data. Overnight deposit and lending rates were also adjusted to 4.00% and 5.00%, respectively. source: Bangko Sentral ng Pilipinas

The benchmark interest rate in Philippines was last recorded at 4.50 percent. Interest Rate in Philippines averaged 7.26 percent from 1985 until 2026, reaching an all time high of 31.00 percent in January of 1985 and a record low of 2.00 percent in November of 2020. This page provides the latest reported value for - Philippines Interest Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news. Philippines Interest Rate - data, historical chart, forecasts and calendar of releases - was last updated on February of 2026.

The benchmark interest rate in Philippines was last recorded at 4.50 percent. Interest Rate in Philippines is expected to be 4.25 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Philippines Interest Rate is projected to trend around 4.75 percent in 2027, according to our econometric models.



Calendar GMT Reference Actual Previous Consensus TEForecast
2025-08-28 07:00 AM Interest Rate Decision 5% 5.25% 5% 5.0%
2025-10-09 06:30 AM Interest Rate Decision 4.75% 5% 5% 5.0%
2025-12-11 06:30 AM Interest Rate Decision 4.5% 4.75% 4.5% 4.5%
2026-02-19 06:30 AM Interest Rate Decision 4.5% 4.25%
2026-04-23 06:30 AM Interest Rate Decision
2026-06-18 06:30 AM Interest Rate Decision


Related Last Previous Unit Reference
Cash Reserve Ratio 5.00 5.00 percent Jan 2026
Deposit Interest Rate 4.00 4.00 percent Jan 2026
Foreign Exchange Reserves 112500.00 110900.00 USD Million Jan 2026
Interest Rate 4.50 4.50 percent Jan 2026
Lending Rate 5.00 5.00 percent Jan 2026
Loans To Banks 450874.39 499803.78 PHP Million Dec 2025
Loans to Private Sector 12113810.86 11788572.86 PHP Million Dec 2025
Money Supply M0 2522493.60 2344552.80 PHP Million Dec 2025
Money Supply M1 7917874.00 7553174.15 PHP Million Dec 2025
Money Supply M2 19716371.75 19055394.29 PHP Million Dec 2025
Money Supply M3 20108014.46 19439306.19 PHP Million Dec 2025


Philippines Interest Rate
In Philippines, interest rate decisions are taken by The Monetary Board of The Bangko Sentral ng Pilipinas (BSP). The official interest rate is the reverse repo rate (RR/P) which is the overnight borrowing rate. The central bank of the Republic of the Philippines is committed to promote and maintain price stability and provide proactive leadership in bringing about a strong financial system conducive to a balanced and sustainable growth of the economy.
Actual Previous Highest Lowest Dates Unit Frequency
4.50 4.50 31.00 2.00 1985 - 2026 percent Daily

News Stream
Philippine Central Bank Cuts Rate in Final 2025 Meeting
The Central Bank of the Philippines cut its benchmark interest rate by 25 bps to 4.5% during its final meeting of the year, marking the fifth straight reduction and bringing total cuts this year to 125 bps. The move aligns with market expectations and lowers borrowing costs to their lowest since October 2022, as a benign inflation outlook allows policymakers room to support growth. Inflation forecasts for 2026 and 2027 were slightly raised to 3.2% and 3.0%, remaining within the BSP’s 2%-4% target. The Monetary Board noted that domestic growth has weakened amid softer business sentiment, governance concerns, and lingering global trade uncertainty, though demand is expected to recover gradually as the effects of monetary easing and improved public spending take hold. The BSP also indicated that the easing cycle is nearing its end, with any additional cuts likely limited and guided by incoming data. Overnight deposit and lending rates were also adjusted to 4.00% and 5.00%, respectively.
2025-12-11
Philippine Central Bank Cuts Rate in Surprise Move
The Central Bank of the Philippines cut its benchmark interest rate by 25 bps to 4.75% during its October 2025 meeting, defying market expectations of a hold at 5%. This move brought the rate to its lowest level since October 2022, as the central bank cited a benign inflation outlook, with price growth well within the official target range and inflation expectations remaining firmly anchored. However, potential electricity rate adjustments and tariff hikes on rice imports could add upward pressure on prices. Meanwhile, the Monetary Board highlighted a weakening domestic growth outlook, partly due to dampened business sentiment stemming from concerns over governance and the implementation of public infrastructure projects. Additionally, signs of softening demand reflect persistent uncertainties in the external environment. The central bank’s overnight deposit and lending facility rates were also lowered to 4.25% and 5.25%, respectively.
2025-10-09
Philippines Central Bank Cuts Rate as Expected
The Central Bank of the Philippines reduced its benchmark interest rate by 25 bps to 5% during its August 2025 meeting, aligning with market expectations and marking the lowest level since November 2022. The annual inflation rate eased to 0.9% in July 2025 from 1.4% in the previous month, registering the lowest reading since October 2019. The central bank’s inflation forecast remains broadly stable, with projections of 1.7% for 2025, 3.3% for 2026, and 3.4% for 2027. However, potential adjustments in electricity rates and higher rice tariffs pose upside risks to the inflation outlook over the policy horizon. Meanwhile, the Board noted that domestic demand remains resilient, although external headwinds—particularly the effects of US policy shifts on global trade and investment—continue to weigh on global economic activity, moderating the outlook for the Philippine economy. The central bank’s overnight deposit and lending facility rates were also lowered to 4.5% and 5.5%, respectively.
2025-08-28