The central bank of the Philippines left its key overnight reverse repurchase rate unchanged at 4.75 percent on December 13th 2018, after hiking 25bps in the previous meeting, as widely expected. Policymakers said that the decision is based on the diminishing inflationary pressures as constraints on food supply eased after the implementation of various non-monetary measures. The Committee noted that the annual inflation rate fell to 6.0 percent in November from 6.7 percent in October. Also, the BSP cut its inflation outlook for 2018 to 5.2 percent from 5.3 percent for 2018; to 3.18 percent from 3.5 percent in 2019 and to 3.04 percent from 3.3 percent in 2020. The interest rates on the overnight lending and deposit facilities were likewise held steady. Interest Rate in Philippines averaged 7.89 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.

Interest Rate in Philippines is expected to be 4.75 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 4.50 in 12 months time. In the long-term, the Philippines Interest Rate is projected to trend around 3.75 percent in 2020, according to our econometric models.

Philippines Interest Rate
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Calendar GMT Actual Previous Consensus TEForecast
2018-08-09 08:00 AM Interest Rate Decision 4% 3.5% 4% 3.75%
2018-09-27 08:00 AM Interest Rate Decision 4.5% 4% 4.5% 4.5%
2018-11-15 08:00 AM Interest Rate Decision 4.75% 4.5% 4.75% 4.5%
2018-12-13 08:00 AM Interest Rate Decision 4.75% 4.75% 4.75% 4.75%
2019-02-07 08:00 AM Interest Rate Decision 4.75%
2019-03-21 08:00 AM Interest Rate Decision
2019-05-09 08:00 AM Interest Rate Decision



Philippines Lifts Key Rate by 25 Bps to 4.75%



The central bank of the Philippines raised its key overnight reverse repurchase rate by 25bps to 4.75 percent on November 15th, 2018, as widely expected. It is the fifth straight hike in borrowing costs this year, bringing interest rate to the highest since 2009. The decision was primarily driven by intensifying inflationary pressures, especially after higher wages and transport costs were approved recently. Also, the BSP increased its inflation forecasts for 2018 to 5.3% from 5.2% while cut its forecast for 2019 to 3.5% from 4.3%. For 2020, inflation is seen at 3.3%. The interest rates on the overnight lending and deposit facilities were likewise lifted accordingly.

In October 2018, the inflation stood at 6.7 percent, unchanged from the previous month but remaining at the highest level since February of 2009. The latest reading is also well above the upper bound of the Bank’s target range of 3.0 percent ± 1.0 percentage point in both 2019 and 2020.

Excerpts from the Statement by the Bangko Sentral NG Pilipina:

"While the latest inflation forecasts show inflation settling within the target band of 3.0 percent ± 1.0 percentage point in both 2019 and 2020, after considering the impact of non-monetary measures, including the rice tariffication bill and the suspension of the oil excise tax, the Monetary Board decided to raise the policy rate by 25 basis points given the upside risks to the inflation outlook and given that inflation expectations have remained elevated as supply-side and possible wage pressures continue to drive price developments.

At the same time, the Monetary Board believes that prospects for the domestic economy remain generally favorable and allow some scope for a measured adjustment in the policy rate to rein in inflation expectations and preempt further second-round effects. The Monetary Board deemed it necessary to respond with proactive policy action to help temper the risks to the inflation outlook, including those emanating from the continued uncertainty in the external environment amid tighter global financial conditions and trade tensions among major economies.

Nevertheless, the Monetary Board continues to emphasize the need for follow-through non-monetary measures to mitigate the impact of supply-side factors on inflation.

The BSP remains prepared to take appropriate policy actions as needed to ensure the achievement of its price and financial stability objectives."


Bangko Sentral NG Pilipinas | Luisa Carvalho | luisa.carvalho@tradingeconomics.com
11/15/2018 9:40:28 AM



Philippines Money Last Previous Highest Lowest Unit
Interest Rate 4.75 4.75 31.00 3.00 percent [+]
Money Supply M0 1093110.82 1065815.07 1093110.82 1918.00 PHP Million [+]
Money Supply M1 3711701.27 3713749.39 3752451.00 14600.00 PHP Million [+]
Interbank Rate 4.91 4.91 102.63 0.00 percent [+]
Money Supply M2 10663838.46 10695186.66 10695186.66 44456.00 PHP Million [+]
Money Supply M3 11140425.38 11157031.36 11157031.36 56544.00 PHP Million [+]
Foreign Exchange Reserves 75490.00 74770.00 86139.11 44.07 USD Million [+]
Banks Balance Sheet 1202.30 1231.30 1231.30 459.52 PHP Billion [+]
Deposit Interest Rate 4.25 4.25 4.25 2.50 percent [+]
Lending Rate 5.25 5.25 45.00 3.50 percent [+]
Loans To Banks 271278.43 278961.54 320071.10 132599.00 PHP Million [+]
Loans To Private Sector 7140476.96 7036275.30 7140476.96 3584899.00 PHP Million [+]
Cash Reserve Ratio 18.00 18.00 25.00 12.00 percent [+]
Central Bank Balance Sheet 4646.30 4750.60 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 December of 2018.

Actual Previous Highest Lowest Dates Unit Frequency
4.75 4.75 31.00 3.00 1985 - 2018 percent Daily




Country Last Previous
Argentina 59.16 Dec/18
Turkey 24.00 Dec/18
Mexico 8.00 Nov/18
Russia 7.75 Dec/18
South Africa 6.75 Nov/18
Brazil 6.50 Dec/18
India 6.50 Dec/18
Indonesia 6.00 Nov/18
China 4.35 Nov/18
Saudi Arabia 2.75 Nov/18
United States 2.25 Nov/18
Singapore 1.97 Nov/18
Canada 1.75 Dec/18
South Korea 1.75 Nov/18
Australia 1.50 Dec/18
United Kingdom 0.75 Nov/18
Euro Area 0.00 Dec/18
France 0.00 Dec/18
Germany 0.00 Dec/18
Italy 0.00 Dec/18
Netherlands 0.00 Dec/18
Spain 0.00 Dec/18
Japan -0.10 Nov/18
Switzerland -0.75 Dec/18


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