Philippinen Zinssatz

The Central Bank of the Philippines trimmed its benchmark interest rate by 25 basis points to 6% during its October 2024 policy meeting, marking the second consecutive rate cut and aligning with market expectations. BSP Governor Eli Remolona emphasized that the decision was driven by the central bank's assessment that price pressures remained manageable. Recent data showed that the country's annual inflation rate slowed sharply to 1.9% in September 2024, from 3.3% in the previous month and falling short of market expectations of 2.5%. This also marked the lowest inflation reading since May 2020. The BSP lowered its risk-adjusted inflation forecast for 2024 to 3.1% from the previous estimate of 3.3%. Conversely, the bank raised its inflation forecasts for 2025 and 2026 to 3.3% and 3.7%, up from previous estimates of 2.9% and 3.3%. This revision is mainly due to potential adjustments in electricity rates and higher minimum wages outside Metro Manila.