MANILA: The Philippine central bank cut its benchmark interest rate by 25 basis points for the second time this year, as slowing inflation gave it room for further easing.
The Bangko Sentral ng Pilipinas reduced the target rate to 6% on Wednesday (Oct 16), as expected by 25 of 26 economists in a Bloomberg survey.
The central bank kicked off its easing cycle in August, and Governor Eli Remolona has signaled a preference for quarter-point cuts, instead of bigger reductions, unless the Southeast Asian nation’s economic growth "turns out to be worse than we thought.”
Philippine inflation slowed to a four-year low of 1.9% in September, putting the nine-month average at 3.4%, which is within the central bank’s forecast range. The economy grew 6.3% in April-June from a year ago, among the fastest in Asia. - Bloomberg
