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.