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Philippines Interest Rate

Philippines Interest Rate

Target Reverse Repurchase in Philippines

The Target Reverse Repurchase (RRP) Rate (%, eop) ended 2024 at 5.75%, down from the 6.50% end-2024 value and up from the reading of 4.00% a decade earlier. For reference, the average interest rate in ASEAN was 4.86% at end-2024. For more information on interest rate, visit our dedicated page.

Philippines Interest Rate Chart

Note: This chart displays Policy Interest Rate (%) for Philippines from 2025 to 2024.
Source: Macrobond.

Philippines Interest Rate Data

2020 2021 2022 2023 2024
Target Reverse Repurchase (RRP) Rate (%, eop) 2.00 2.00 5.50 6.50 5.75
91-Day Treasury Bill (%, eop) 1.02 1.13 4.09 5.00 5.82
10-Year Bond Yield (%, eop) 3.02 4.82 7.01 5.95 6.18

Central Bank decreases rates in October

Bank cuts rates unexpectedly: At its meeting on 9 October, the Bangko Sentral ng Pilipinas (BSP) decided to reduce the target reverse repurchase (RRP) rate for the fourth consecutive time by 25 basis points to 4.75%, defying market expectations of a hold. This brought cumulative rate cuts to 175 basis points since July 2024.

BSP pumps a bit more oxygen into an economy losing steam: With inflation below the Central Bank’s 2.0–4.0% target, well-anchored expectations and limited risks to the inflation outlook, policymakers saw room to cut rates as economic growth clouds darkened. Business sentiment has cooled amid concerns over governance and the implementation of public infrastructure projects—due to corruption allegations—while softening demand points to an economy running below potential. Moreover, stronger external headwinds due to U.S. tariffs reinforced the case for easing.

Bank to stand pat: The BSP remained open to further rate cuts as the favorable inflation outlook and cooling domestic demand provide room to further support economic activity. Currently, the majority of our panelists expect the Bank to stand pat at its last meeting of 2025 on 11 December and resume the easing cycle in 2026. That said, some panelists expect a further rate cut at the December meeting due to the dovish tone of the press release.

Panelist insight: Commenting on the outlook, Radhika Rao, analyst at DBS Bank, stated: “The central bank’s dovish commentary, impending growth risks and a negative output gap suggest that the door remains open for another cut in December […]. Exogenous forces are conducive, with a resumption in the US Fed rate cuts likely to preserve rate differentials.”

Consensus Forecasts and Projections for the next ten years

How should you choose a forecaster if some are too optimistic while others are too pessimistic? FocusEconomics collects Philippine interest rate projections for the next ten years from a panel of 20 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts and averaged to provide one Consensus Forecast you can rely on for each indicator. By averaging all forecasts, upside and downside forecasting errors tend to cancel each other out, leading to the most reliable interest rate forecast available for Philippine interest rate.

Download one of our sample reports to visualize what a Consensus Forecast is and see our Philippine interest rate projections.

Want to get access to the full dataset of Philippine interest rate forecasts? Send an email to info@focus-economics.com.

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