The Bangko Sentral ng Pilipinas (BSP) lowered its overnight borrowing rate by 25 basis points to 6.0 percent, citing manageable price pressures and a strong domestic economic outlook.
The Monetary Board, the policy-making body of the Bangko Sentral ng Pilipinas on Wednesday reduced its overnight borrowing rate by 25 basis points to 6.0 percent.
Oxford Economics said “this decision raises the risk of a weaker currency, particularly as the peso has faced a recent period of depreciation.” The risk-adjusted inflation forecast for 2024 eased to 3.1 percent from 3.3 percent in the previous meeting. However, the risk-adjusted forecasts for 2025 and 2026 increased slightly to 3.3 percent and 3.7 percent, respectively. This outlook is safeguarded by well-anchored inflation expectations.
The Monetary Board said it expects domestic economic growth to continue to be strong. This reflects improved prospects for household income and consumption, investments, and government spending, which are supported by the start of the monetary easing cycle in August and the announced reduction in reserve requirements in October.
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