The central bank of the Philippines raised its key overnight reverse repo rate by 50bps to 5.5% during its December 2022 meeting, in line with market expectations. It is a seventh consecutive rate hike, pushing borrowing costs to a new high since early-2009, aiming to control inflation which stands at 14-year high and bring it back to 2%-4%. The central bank sees inflation peaking in December and to reach 2% in Q4 next year. The central bank now sees inflation higher in both 2023 (average of 4.5% vs 4.3%) and 2024 (average of 2.8% vs 3.1%). Policymakers also added they could not rule out further policy actions in 2023 and that there's a low probability that the terminal rate will remain the same as now. source: Bangko Sentral ng Pilipinas
Interest Rate in Philippines averaged 7.37 percent from 1985 until 2022, reaching an all time high of 31.00 percent in January of 1985 and a record low of 2.00 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 January of 2023.
Interest Rate in Philippines is expected to be 6.00 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 5.00 percent in 2024 and 5.50 percent in 2025, according to our econometric models.