The central bank of the Philippines lowered its overnight reverse repurchase facility by 25bps to 4.25 percent during its August meeting, saying inflation expectations have moderated further amid weakening global growth. Meanwhile, data showed the country's economic growth slowed to an over four-year low in the second quarter of the year. Policymakers also noted that the benign inflation outlook provides room for a further reduction in the policy rate. Interest Rate in Philippines averaged 7.83 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 4.00 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
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% 4.25% 4.5%
2019-08-08 08:00 AM Interest Rate Decision 4.25% 4.5% 4.25% 4.25%
2019-09-26 08:00 AM Interest Rate Decision 4.25% 4%
2019-11-14 08:00 AM Interest Rate Decision 4%
2019-12-12 08:00 AM Interest Rate Decision 4%



Philippines Cuts Policy Interest Rate to 4.25%

The central bank of the Philippines lowered its overnight reverse repurchase facility by 25bps to 4.25 percent during its August meeting, saying inflation expectations have moderated further amid weakening global growth. Meanwhile, data showed the country's economic growth slowed to an over four-year low in the second quarter of the year. Policymakers also noted that the benign inflation outlook provides room for a further reduction in the policy rate.

Bangko Sentral ng Pilipinas policy statement:

At its meeting on monetary policy today, the Monetary Board decided to cut the interest rate on the BSP’s overnight reverse repurchase (RRP) facility by 25 basis points (bps) to 4.25 percent. Accordingly, the interest rates on the overnight deposit and lending facilities were reduced to 3.75 percent and 4.75 percent, respectively.

The Monetary Board’s decision is based on its assessment that price pressures have continued to ease since the previous meeting. Latest baseline forecasts of the BSP indicate that inflation remains likely to settle within the inflation target of 3.0 percent ± 1 percentage point for 2019 up to 2021. Inflation expectations have also moderated further to levels consistent with the inflation target based on the BSP’s survey of private sector economists. Moreover, the risks to the inflation outlook continue to be seen as broadly balanced for 2019 and 2020, while they are seen to tilt to the downside for 2021. Weaker global economic prospects continue to temper the inflation outlook. The potential adverse effects of a prolonged El Niño episode to inflation have subsided.

The Monetary Board noted that prospects for global economic activity are likely to remain weak amid sustained trade tensions among major economies. Domestically, the outlook for growth continues to be firm on the back of a projected recovery in household spending and the accelerated implementation of the government’s infrastructure spending program, after the delay in expenditures due to the legislative impasse in the approval of the budget in January to April 2019.

On balance, therefore, the Monetary Board believes that the benign inflation outlook provides room for a further reduction in the policy rate as a pre-emptive move against the risks associated with weakening global growth. Going forward, the BSP will continue to monitor price and output conditions to ensure that monetary policy remains appropriately supportive of sustained non-inflationary economic growth over the medium term.


Bangko Sentral ng Pilipinas | Joana Ferreira | joana.ferreira@tradingeconomics.com
8/8/2019 9:05:14 AM



Philippines Money Last Previous Highest Lowest Unit
Interest Rate 4.25 4.50 31.00 3.00 percent [+]
Money Supply M0 1182021.75 1220864.64 1233502.92 1918.00 PHP Million [+]
Money Supply M1 3940452.79 3940951.73 3948629.00 14600.00 PHP Million [+]
Interbank Rate 4.34 4.53 102.63 0.00 percent [+]
Money Supply M2 11152970.15 11120965.00 11152970.15 44456.00 PHP Million [+]
Money Supply M3 11776034.48 11741647.54 11776034.48 56544.00 PHP Million [+]
Foreign Exchange Reserves 85180.00 85379.05 86139.11 44.07 USD Million [+]
Banks Balance Sheet 1214.60 1232.50 1248.90 459.52 PHP Billion [+]
Deposit Interest Rate 3.75 4.00 4.25 2.50 percent [+]
Lending Rate 4.75 5.00 45.00 3.50 percent [+]
Loans To Banks 282483.21 273995.80 320071.10 132599.00 PHP Million [+]
Loans To Private Sector 7453735.35 7444943.80 7453735.35 3584899.00 PHP Million [+]
Cash Reserve Ratio 18.00 18.00 25.00 12.00 percent [+]
Central Bank Balance Sheet 5145.37 4931.78 5145.37 479.78 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 2019.

Actual Previous Highest Lowest Dates Unit Frequency
4.25 4.50 31.00 3.00 1985 - 2019 percent Daily




Country Last Previous
Argentina 55.99 Jul/19
Turkey 19.75 Jul/19
Mexico 8.00 Aug/19
Russia 7.25 Jul/19
South Africa 6.50 Jul/19
Brazil 6.00 Jul/19
Indonesia 5.75 Jul/19
India 5.40 Aug/19
China 4.35 Jul/19
Saudi Arabia 2.75 Aug/19
United States 2.25 Jul/19
Singapore 1.94 Jul/19
Canada 1.75 Jul/19
South Korea 1.50 Jul/19
Australia 1.00 Aug/19
United Kingdom 0.75 Aug/19
Euro Area 0.00 Jul/19
France 0.00 Jul/19
Germany 0.00 Jul/19
Italy 0.00 Jul/19
Netherlands 0.00 Jul/19
Spain 0.00 Jul/19
Japan -0.10 Aug/19
Switzerland -0.75 Jun/19


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