Philippines: Central Bank lowers policy rate to 3.50%
October 25, 2012
At its 25 October monetary policy meeting, the Central Bank cut its Reverse Repurchase rate by 25 basis points to a new record low of 3.50%, in a decision expected by the market. Over the course of this year, the Central Bank has cut the rates four times, resulting in a cumulative reduction of 100 basis points to the Reverse Repurchase rate. According to the Central Bank, "the Monetary Board's decision is based on its assessment that the inflation environment continues to be benign". Policymakers noted that global economic conditions remain "tepid", however, on the domestic front, economic growth should be "firm". Regarding price developments, monetary authorities reaffirmed that "the future inflation path remains within target for 2012 up to 2014" and that the risks to inflation are "broadly balanced".