The central bank of the Philippines raised its key overnight borrowing rate by 25bps to 2.5% at its June 23rd of 2022 meeting, the first back-to-back increase in borrowing costs since 2018, and in line with market expectations. The central bank sees the average inflation rate for 2022 at 5%, slightly higher than its previous forecast of 4.6%, and said it was prepared to take all of the necessary action to bring inflation towards the 2-4% target band. Meanwhile, the forecast for the average inflation rate in 2023 was also revised higher to 4.2%, from a prior estimate of 3.9%, while the inflation forecast for 2024 stood at 3.3%. The monetary board also noted that inflation expectations continued to rise, elevating the risk of further second-round effects. The headline inflation rate jumped to 5.4% in May, the highest since November 2018, above the central bank’s target of 2-4% due to rising food costs. source: Bangko Sentral ng Pilipinas

Interest Rate in Philippines averaged 7.43 percent from 1985 until 2022, reaching an all time high of 31 percent in January of 1985 and a record low of 2 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 June of 2022.

Interest Rate in Philippines is expected to be 2.50 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 3.75 percent in 2023 and 3.50 percent in 2024, according to our econometric models.

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Philippines Interest Rate



Calendar GMT Actual Previous Consensus TEForecast
2022-03-24 07:00 AM 2% 2% 2% 2%
2022-05-19 07:00 AM 2.25% 2% 2.25% 2.25%
2022-06-23 07:00 AM 2.5% 2.25% 2.5% 2.5%
2022-08-18 07:00 AM 2.5% 2.5%
2022-09-22 07:00 AM
2022-11-17 07:00 AM


Related Last Previous Unit Reference
Interest Rate 2.50 2.25 percent Jun 2022
Interbank Rate 2.38 2.38 percent Jun 2022
Money Supply M1 6338959.26 6283157.88 PHP Million Apr 2022
Money Supply M0 1929974.44 1869345.32 PHP Million Apr 2022
Money Supply M2 14657098.50 14597723.85 PHP Million Apr 2022
Money Supply M3 15253466.69 15243735.26 PHP Million Apr 2022
Foreign Exchange Reserves 103530.00 105400.00 USD Million May 2022
Deposit Interest Rate 2.00 2.00 percent Jun 2022
Lending Rate 2.50 3.00 percent Jun 2022
Loans To Private Sector 8741865.36 8632327.49 PHP Million Apr 2022
Loans To Banks 332525.79 325243.64 PHP Million Apr 2022
Cash Reserve Ratio 12.00 12.00 percent Mar 2022

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
2.50 2.25 31.00 2.00 1985 - 2022 percent Daily

News Stream
Philippines Hikes Key Rate as Expected
The central bank of the Philippines raised its key overnight borrowing rate by 25bps to 2.5% at its June 23rd of 2022 meeting, the first back-to-back increase in borrowing costs since 2018, and in line with market expectations. The central bank sees the average inflation rate for 2022 at 5%, slightly higher than its previous forecast of 4.6%, and said it was prepared to take all of the necessary action to bring inflation towards the 2-4% target band. Meanwhile, the forecast for the average inflation rate in 2023 was also revised higher to 4.2%, from a prior estimate of 3.9%, while the inflation forecast for 2024 stood at 3.3%. The central bank also raised the overnight lending facility rate to 3.0% and the overnight deposit facility rate to 2.0%.
2022-06-23
Philippines Raises Rates for 1st Time since 2018
The central bank of the Philippines raised its key overnight borrowing rate by 25bps to 2.25% on May 19th 2022, the first increase in borrowing costs since 2018, and in line with market expectations, aiming to tackle rising inflationary pressures. The central bank noted that inflation could breach the 2%-4% target this year and elevated pressures could persist. Policymakers also said that a strong economic rebound and labour market conditions provided scope to continue rolling back pandemic interventions.
2022-05-19
Philippines Holds Rates But Warns Inflation Could Rise
The Philippine central bank kept its key interest rate unchanged at a record low of 2% during its March meeting, as widely expected, citing inflation expectations that continue to be anchored between 2-4%. That said, the board warned that 2022 average inflation could breach the upper end of the 2-4% target range, likely at 4.3% which was higher than the February forecast of 3.7%, on surging commodity prices. Further, the board mentioned that it would continue to develop its plans for the gradual normalization of policy support, adding that it stands ready to respond to inflation pressures. Also, policymakers reiterated that it will observe further domestic economic activity that has gained stronger traction amid easing mobility curbs and despite some headwinds including heightened geopolitical tensions, a resurgence in COVID-19 infections and supply chain issues,which all warrant closer monitoring to enable timely intervention in order to arrest potential second-round effects.
2022-03-24