The central bank of the Philippines cut its overnight reverse repurchase facility by 25bps to 4 percent on September 26th 2019, as widely expected. It is the third slash so far this year and follows a 25 bps cut in the previous meeting, amid weakening global growth. Interest Rate in Philippines averaged 7.83 percent from 1985 until 2019, reaching an all time high of 31 percent in January of 1985 and a record low of 3 percent in June of 2016.

Interest Rate in Philippines is expected to be 4.00 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Philippines to stand at 4.00 in 12 months time. In the long-term, the Philippines Interest Rate is projected to trend around 3.50 percent in 2020, according to our econometric models.

Philippines Interest Rate
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Calendar GMT Actual Previous Consensus TEForecast
2019-05-09 08:00 AM Interest Rate Decision 4.5% 4.75% 4.5% 4.5%
2019-06-20 08:00 AM Interest Rate Decision 4.5% 4.5% 4.25% 4.5%
2019-08-08 08:00 AM Interest Rate Decision 4.25% 4.5% 4.25% 4.25%
2019-09-26 08:00 AM Interest Rate Decision 4% 4.25% 4% 4%
2019-11-14 08:00 AM Interest Rate Decision 4% 4%
2019-12-12 08:00 AM Interest Rate Decision 4%



Philippines Trims Key Rate to 4%

The central bank of the Philippines cut its overnight reverse repurchase facility by 25bps to 4 percent on September 26th 2019, as widely expected. It is the third slash so far this year and follows a 25 bps cut in the previous meeting, aiming to boost sluggish economy. Policymakers said that the decision is based on its assessment that price pressures have slowed further since the previous meeting and added that the benign inflation outlook provides room for a further reduction in the policy rate.

Bangko Sentral ng Pilipinas policy statement:

At its meeting on monetary policy today, the Monetary Board decided to cut the interest rate on the BSP’s overnight reverse repurchase (RRP) facility by 25 basis points (bps) to 4.0 percent, effective Friday, 27 September 2019. Accordingly, the interest rates on the overnight deposit and lending facilities were reduced to 3.5 percent and 4.5 percent, respectively.

The Monetary Board’s decision is based on its assessment that price pressures have eased further since the previous meeting. Latest baseline forecasts of the BSP continue to indicate that inflation is likely to settle within the lower half of the target band of 3.0 percent ± 1 percentage point for 2019 up to 2021. Inflation expectations also remain well-anchored within the inflation target range based on the BSP’s survey of private sector economists.

The Monetary Board also noted that the balance of risks to the inflation outlook have shifted toward the upside for 2020, while it is seen to tilt to the downside for 2021. Upside risks to inflation over the near term emanate mainly from volatility in oil prices due to geopolitical tensions in the Middle East and from the potential impact of the African Swine Fever outbreak on food prices. Meanwhile, the subdued pace of global economic activity continues to temper the inflation outlook.

At the same time, the Monetary Board believes that prospects for global economic growth are likely to remain weak owing mainly to uncertainty over trade policies. Firm domestic spending and progress on policy reforms will serve as a buffer against global headwinds.

Given these considerations, the Monetary Board believes that the benign inflation outlook provides room for a further reduction in the policy rate to support economic growth and reinforce market confidence. Going forward, the BSP will continue to monitor emerging price and output developments to ensure that monetary policy settings remain consistent with price stability while being supportive of sustained non-inflationary economic growth over the medium term.


Bangko Sentral ng Pilipinas | Stefanie Moya | stefanie.moya@tradingeconomics.com
9/26/2019 9:19:50 AM


News

Philippines Cuts Policy Interest Rate to 4.25%
The central bank of the Philippines lowered its overnight reverse repurchase facility by 25bps to 4.25 percent during its August meeting, saying inflation expectations have moderated further amid weakening global growth. Meanwhile, data showed the country's economic growth slowed to an over four-year low in the second quarter of the year. Policymakers also noted that the benign inflation outlook provides room for a further reduction in the policy rate.
Published on 2019-08-08

Philippines Holds Key Interest Rate Steady at 4.5%
The central bank of the Philippines left its key overnight reverse repurchase facility rate unchanged at 4.5% on its June 20th 2019 meeting, while markets had expected it at 4.25%. Policymakers said the decision remains consistent with the manageable inflation outlook and firm domestic growth prospects, unveiling that a prudent pause allows it to observe and assess the impact of prior monetary adjustments. The bank noted the uptick in inflation to 3.2% in May from 3% in April, which is likely to be temporary and still within the 2-4% target range. Also, the BSP cut its inflation forecasts for 2019 to 2.7% from 2.9% and for 2020 to 3% from 3.1%, amid declining oil prices and the prospect of a stronger peso.
Published on 2019-06-20

Philippines Cuts Key Rate by 25 Bps to 4.5%
The central bank of the Philippines lowered its key overnight reverse repurchase facility rate by 25bps to 4.5 percent on its May 5th 2019 meeting, as widely expected. It is the first rate cut since May 2016, reversing 175 bps rate hikes last year. Policymakers said that the decision remains consistent with the price stability objective and added that the risks to the inflation outlook are broadly balanced. The Committee noted the impact of the budget delays on near-term economic activity and said that prospects for domestic demand remain firm.
Published on 2019-05-09

Philippines Leaves Monetary Policy Unchanged
The Philippine central bank left its key overnight reverse repurchase facility rate unchanged at 4.75 percent on March 21st 2019, as widely expected. Policymakers said that the decision remains consistent with the price stability objective and that they will continue to monitor developments affecting the inflation outlook.
Published on 2019-03-21



Philippines Money Last Previous Highest Lowest Unit
Interest Rate 4.00 4.25 31.00 3.00 percent [+]
Money Supply M0 1166417.26 1156864.76 1231841.47 1918.00 PHP Million [+]
Money Supply M1 4018553.14 3983435.14 4018553.14 14600.00 PHP Million [+]
Interbank Rate 4.09 4.09 102.63 0.00 percent [+]
Money Supply M2 11198689.25 11206109.54 11206109.54 44456.00 PHP Million [+]
Money Supply M3 11857340.59 11867590.24 11867590.24 56544.00 PHP Million [+]
Foreign Exchange Reserves 86160.00 86031.00 86160.00 44.07 USD Million [+]
Banks Balance Sheet 2264.70 2224.90 2264.70 459.52 PHP Billion [+]
Deposit Interest Rate 3.75 3.75 4.25 2.50 percent [+]
Lending Rate 4.75 4.75 45.00 3.50 percent [+]
Loans To Banks 302542.34 294356.43 320071.10 132599.00 PHP Million [+]
Loans To Private Sector 7579963.13 7536885.81 7579963.13 3584899.00 PHP Million [+]
Cash Reserve Ratio 18.00 18.00 25.00 12.00 percent [+]
Central Bank Balance Sheet 5159.88 4981.41 5191.86 479.78 PHP Billion [+]


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. 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 - actual data, historical chart and calendar of releases - was last updated on October of 2019.

Actual Previous Highest Lowest Dates Unit Frequency
4.00 4.25 31.00 3.00 1985 - 2019 percent Daily




Country Last Previous
Argentina 68.00 Oct/19
Turkey 16.50 Sep/19
Mexico 7.75 Sep/19
Russia 7.00 Sep/19
South Africa 6.50 Sep/19
Brazil 5.50 Sep/19
Indonesia 5.25 Sep/19
India 5.15 Oct/19
China 4.20 Oct/19
Saudi Arabia 2.50 Sep/19
United States 2.00 Sep/19
Canada 1.75 Sep/19
Singapore 1.72 Sep/19
South Korea 1.25 Oct/19
Australia 0.75 Oct/19
United Kingdom 0.75 Sep/19
Euro Area 0.00 Sep/19
France 0.00 Sep/19
Germany 0.00 Sep/19
Italy 0.00 Sep/19
Netherlands 0.00 Sep/19
Spain 0.00 Sep/19
Japan -0.10 Sep/19
Switzerland -0.75 Sep/19


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