Philippines Interest Rate  1985-2018 | Data | Chart | Calendar | Forecast

The central bank of Philippines raised its key overnight reverse repurchase rate by 50bps to 4 percent on August 9th, 2018, in line with market expectations. It was the sharpest rate increase since 2008 and it follows two consecutive 25bps hikes earlier this year, as inflation expectations remain elevated for 2018 and upside risks continue to dominate. In July, the inflation jumped to 5.7 percent from 5.2 percent in the previous month, reaching the highest level since March of 2009. The interest rates on the overnight lending and deposit facilities were likewise raised accordingly. Interest Rate in Philippines averaged 7.93 percent from 1985 until 2018, reaching an all time high of 31 percent in January of 1985 and a record low of 3 percent in June of 2016.

Philippines Interest Rate
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Philippines Hikes Key Rate by 50 Bps to 4%


The central bank of Philippines raised its key overnight reverse repurchase rate by 50 bps to 4 percent on August 9th, 2018, in line with market expectations. It follows two consecutive 25bps hikes earlier this year, saying inflation expectations remain elevated for 2018 and upside risks continue to dominate. The corresponding interest rates on the overnight lending and deposit facilities were also raised accordingly.

In July, the inflation jumped to 5.7 percent from 5.2 percent in the previous month, reaching the highest level since March of 2009. 

Excerpts from the Statement by the Bangko Sentral NG Pilipina:

In deciding to raise the BSP’s policy interest rate anew, the Monetary Board noted that latest baseline forecasts have shifted higher over the policy horizon, indicating some risk of inflation exceeding the target in 2019. Upside risks also continue to dominate the inflation outlook, as the sustained increase in core inflation suggests broadening price pressures amid resilient aggregate demand conditions. Meanwhile, inflation expectations remain elevated, although staying within the target of 3.0 percent ± 1.0 percentage point for 2019.

For these reasons, the Monetary Board deemed stronger monetary action to be necessary to rein in inflation expectations and prevent sustained supply-side price pressures from driving further second-round effects, even as the previous monetary policy responses continue to work their way through the economy. The Monetary Board believed that the series of policy rate adjustments thus far in 2018 will help reduce further the risks to inflation, including those emanating from the ongoing normalization of monetary policy in advanced economies and its impact on the foreign exchange market, and bring inflation toward a target-consistent path over the medium term. Favorable conditions arising from sustained domestic growth also suggest that the economy can accommodate a further tightening of monetary policy settings.

The Monetary Board likewise reaffirmed its support for carefully coordinated efforts with other government agencies in implementing non-monetary measures to further mitigate the impact of supply-side factors on inflation. The BSP reiterates its strong commitment and readiness to take all necessary policy actions to address the threat of high inflation and deliver on its primary mandate of price stability. 


Bangko Sentral NG Pilipinas | Gabriela Costa | gabriela.costa@tradingeconomics.com
8/9/2018 9:00:04 AM



Calendar GMT Actual Previous Consensus TEForecast
2018-05-10 08:00 AM Interest Rate Decision 3.25% 3% 3.25% 3.25%
2018-06-20 08:00 AM Interest Rate Decision 3.5% 3.25% 3.5% 3.25%
2018-08-09 08:00 AM Interest Rate Decision 4% 3.5% 4% 3.75%
2018-09-27 08:00 AM Interest Rate Decision 4% 4%
2018-11-15 08:00 AM Interest Rate Decision 4.25%
2018-12-13 08:00 AM Interest Rate Decision 4.25%


Philippines Money Last Previous Highest Lowest Unit
Interest Rate 4.00 3.50 31.00 3.00 percent [+]
Interbank Rate 4.06 4.06 102.63 0.00 percent [+]
Money Supply M0 1050476.27 1059473.00 1063042.66 1918.00 PHP Million [+]
Money Supply M1 3734201.62 3752451.00 3752451.00 14600.00 PHP Million [+]
Money Supply M2 10607741.56 10572988.00 10607741.56 44456.00 PHP Million [+]
Money Supply M3 11058915.71 11032673.00 11058915.71 56544.00 PHP Million [+]
Foreign Exchange Reserves 76890.00 77680.00 86139.11 44.07 USD Million [+]
Banks Balance Sheet 1150.70 1129.00 1189.10 459.52 PHP Billion [+]
Deposit Interest Rate 3.50 3.50 3.50 2.50 percent [+]
Lending Rate 4.50 4.50 45.00 3.50 percent [+]
Loans To Banks 278633.04 253709.00 320071.10 132599.00 PHP Million [+]
Loans To Private Sector 6787849.92 6678118.00 6787849.92 3584899.00 PHP Million [+]
Cash Reserve Ratio 18.00 19.00 25.00 12.00 percent [+]
Central Bank Balance Sheet 4683.50 4781.70 4781.70 479.78 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 August of 2018.

Actual Previous Highest Lowest Dates Unit Frequency
4.00 3.50 31.00 3.00 1985 - 2018 percent Daily




interest rate by Country
Country Last
Turkey 17.75 Jul/18
Mexico 7.75 Aug/18
Russia 7.25 Jul/18
Brazil 6.50 Aug/18
India 6.50 Aug/18
Indonesia 5.50 Aug/18
China 4.35 Jul/18
United States 2.00 Aug/18
Australia 1.50 Aug/18
Canada 1.50 Jul/18
South Korea 1.50 Jul/18
United Kingdom 0.75 Aug/18
Euro Area 0.00 Jul/18
France 0.00 Jul/18
Germany 0.00 Jul/18
Italy 0.00 Jul/18
Netherlands 0.00 Jul/18
Spain 0.00 Jul/18
Japan -0.10 Jul/18
Switzerland -0.75 Jul/18


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