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. Interest Rate in Philippines averaged 7.85 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 4.50 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
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% 4.75% 4.75% 4.75%
2019-03-21 08:00 AM Interest Rate Decision 4.75% 4.75% 4.75% 4.75%
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% 4.5%
2019-08-08 08:00 AM Interest Rate Decision 4.5%
2019-09-26 08:00 AM Interest Rate Decision 4%



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.

Statement by the Bangko Sentral NG Pilipinas:

At its meeting on monetary policy today, the Monetary Board decided to reduce the interest rate on the BSP’s overnight reverse repurchase (RRP) facility by 25 basis points to 4.5 percent, effective on Friday, 10 May 2019. The interest rates on the overnight lending and deposit facilities were reduced accordingly.

The Monetary Board’s decision is based on its assessment that the inflation outlook continues to be manageable, with easing price pressures owing to the decline in food prices amid improved supply conditions. Latest baseline forecasts indicate that inflation remains likely to settle within the target range of 3.0 percent ± 1.0 percentage point for both 2019 and 2020, while inflation expectations have moderated further.

In deciding on the stance of monetary policy, the Monetary Board noted the impact of the budget delays on near-term economic activity, but took the view that the prospects for domestic demand remain firm, to be supported by a projected recovery in household spending and the continued implementation of the government’s infrastructure program. In addition, the Monetary Board observed that the global economic growth momentum has slowed down in 2019. Meanwhile, indications of slower growth in domestic liquidity and credit require careful monitoring.

At the same time, the Monetary Board also noted that the risks to the inflation outlook remain broadly balanced for 2019 amid risks of a prolonged El Niño episode and higher-than-expected increases in global oil prices. For 2020, the risks continue to lean toward the downside as weaker global economic activity could temper commodity price pressures.

Looking ahead, the BSP will continue to monitor developments affecting the inflation outlook to ensure that the monetary policy stance remains consistent with its price stability objective.


Bangko Sentral NG Pilipinas | Stefanie Moya | stefanie.moya@tradingeconomics.com
5/9/2019 10:24:15 AM



Philippines Money Last Previous Highest Lowest Unit
Interest Rate 4.50 4.75 31.00 3.00 percent [+]
Money Supply M0 1217026.00 1189001.87 1233502.92 1918.00 PHP Million [+]
Money Supply M1 3948629.00 3808219.93 3948629.00 14600.00 PHP Million [+]
Interbank Rate 4.97 4.97 102.63 0.00 percent [+]
Money Supply M2 11064501.00 10796808.15 11065704.62 44456.00 PHP Million [+]
Money Supply M3 11668580.00 11379651.19 11668580.00 56544.00 PHP Million [+]
Foreign Exchange Reserves 85020.00 83960.00 86139.11 44.07 USD Million [+]
Banks Balance Sheet 1214.60 1232.50 1248.90 459.52 PHP Billion [+]
Deposit Interest Rate 4.00 4.25 4.25 2.50 percent [+]
Lending Rate 5.00 5.25 45.00 3.50 percent [+]
Loans To Banks 293737.00 248521.13 320071.10 132599.00 PHP Million [+]
Loans To Private Sector 7416523.00 7212538.29 7416523.00 3584899.00 PHP Million [+]
Cash Reserve Ratio 18.00 18.00 25.00 12.00 percent [+]
Central Bank Balance Sheet 4851.29 4613.29 4851.29 479.78 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 June of 2019.

Actual Previous Highest Lowest Dates Unit Frequency
4.50 4.75 31.00 3.00 1985 - 2019 percent Daily




Country Last Previous
Argentina 67.31 Jun/19
Turkey 24.00 Jun/19
Mexico 8.25 May/19
Russia 7.50 Jun/19
South Africa 6.75 May/19
Brazil 6.50 May/19
Indonesia 6.00 May/19
India 5.75 Jun/19
China 4.35 May/19
Saudi Arabia 3.00 May/19
United States 2.50 May/19
Singapore 1.88 May/19
Canada 1.75 May/19
South Korea 1.75 May/19
Australia 1.25 Jun/19
United Kingdom 0.75 May/19
Euro Area 0.00 Jun/19
France 0.00 Jun/19
Germany 0.00 Jun/19
Italy 0.00 Jun/19
Netherlands 0.00 Jun/19
Spain 0.00 Jun/19
Japan -0.10 May/19
Switzerland -0.75 Jun/19


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