The Central Bank of the Philippines held its benchmark interest rate at 6.50% in December 2023, in line with market expectations, and paused for the second consecutive meeting as inflationary pressures began to ease. In November, the country’s headline inflation slowed to a one-and-a-half-year low of 4.1%, falling from 4.9% in the previous month and nearing the regulators’ target range of 2% to 4%. Also, inflation forecasts were revised lower to 6.0% from 6.1% in 2023 and to 4.2% from 4.4% in 2024. Despite the slowdown, policymakers deemed that policy would stay tight for longer and were ready to adjust if necessary, as overall risks to inflation remained tilted on the upside. source: Bangko Sentral ng Pilipinas
The benchmark interest rate in Philippines was last recorded at 6.50 percent. Interest Rate in Philippines averaged 7.34 percent from 1985 until 2023, 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 2024.
The benchmark interest rate in Philippines was last recorded at 6.50 percent. Interest Rate in Philippines is expected to be 6.50 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 4.00 percent in 2025, according to our econometric models.
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.
| Actual | Previous | Highest | Lowest | Dates | Unit | Frequency | ||
|---|---|---|---|---|---|---|---|---|
| 6.50 | 6.50 | 31.00 | 2.00 | 1985 - 2023 | percent | Daily |
News Stream
Philippine Central Bank Holds Rate Steady as Expected
The Central Bank of the Philippines held its benchmark interest rate at 6.50% in December 2023, in line with market expectations, and paused for the second consecutive meeting as inflationary pressures began to ease. In November, the country’s headline inflation slowed to a one-and-a-half-year low of 4.1%, falling from 4.9% in the previous month and nearing the regulators’ target range of 2% to 4%. Also, inflation forecasts were revised lower to 6.0% from 6.1% in 2023 and to 4.2% from 4.4% in 2024. Despite the slowdown, policymakers deemed that policy would stay tight for longer and were ready to adjust if necessary, as overall risks to inflation remained tilted on the upside.
2023-12-14
Philippine Central Bank Leaves Rate Steady at 6.5%
The central bank of the Philippines held its benchmark interest rate at 6.50% in November 2023, in line with market expectations after a surprise off-cycle hike of 25 bps in September, citing a moderated inflation outlook and explained that maintaining the current rates would allow previous adjustments to continue impacting the economy. In October, the country’s headline inflation slowed for the first time in three months, dropping to 4.9% from 6.1% in the prior month. Despite this slowdown, inflation remained above the government’s target range of 2% to 4%, and risks to inflation remained on the upside, primarily due to transport fare and wage adjustments.
2023-11-16
Philippines Unexpectedly Hikes Key Rate
The central bank of the Philippines raised its benchmark interest rate by 25 basis points to 6.5% in a surprise off-cycle meeting on October 26th. Policymakers said the move aims to prevent supply-side price pressures from inducing additional second-round effects and further dislodging inflation expectations. The latest baseline projections point to an elevated inflation path over the policy horizon as upside risks continue to manifest. At the same time, second-round effects have broadened, including transportation fare increases and minimum wage adjustments. Earlier this month, the central bank signaled its readiness to resume monetary tightening due to the persistent increase in food and transportation prices that was keeping inflation above its target range of 2%-4%. In September, inflation increased to 6.1%, the highest level in four months, led by a double-digit rise in the cost of rice.
2023-10-26
