Philippines: Central Bank lowers interest rates by 25 basis points
January 19, 2012
At its 19 January monetary policy meeting, the Central Bank cut the benchmark interest rate by 25 basis points to 4.25%. The decision was expected by market participants and followed five consecutive meetings in which interest rates had been left unchanged. The Bank's decision aims at boosting economic activity amid increasing external headwinds and slowing inflation. The Central Bank stated that it ?considers the overall balance of global economic activity to be tipping towards a further slowdown?. Weaker external demand has already dragged down Philippine exports, which contracted for a seventh consecutive month in November. That said, monetary authorities expect domestic demand to remain buoyant, whilst also acknowledging that ?the inflation outlook remains comfortably within the target range, with expectations well-anchored?.