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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 6.5% end-2024 value and up from the reading of 4% a decade earlier. For reference, the average interest rate in ASEAN was 5.75% 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 2014 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 cuts rates further in June

Monetary loosening cycle continues: At its meeting on 19 June, the Central Bank (BSP) reduced the target reverse repurchase (RRP) rate by 25 basis points to 5.25%, mirroring April’s same-sized cut and matching market expectations.

Economic concerns take precedence over currency weakness: June’s cut primarily aimed to support the economy: The BSP noted that a slowing global economy will likely curtail GDP growth in the Philippines, too. Moreover, the Bank cut its inflation forecast for 2025 from 2.4% to 1.6% on muted global economic activity and higher oil production abroad. The BSP remained unphased by the peso’s recent depreciation—the sharpest in Asia in the month prior to the Bank’s decision—which it attributed to global risk aversion rather than weak fundamentals.

Rate cuts to continue this year: The Central Bank indicated that it would shift toward safeguarding economic growth, stating that it will ensure that monetary policy “is conducive to sustainable economic growth and employment”. Most panelists see between 25 and 75 basis points of further rate reductions by the end of 2025 as the BSP continues to support economic momentum. The Bank will reconvene on 28 August.

Panelist insight: EIU analysts said: “Although the BSP noted the risk to inflation from geopolitical tensions, it still saw the need for more accommodative policy. That aligns with our view that the inflationary impact of the Middle East conflict will be relatively mild in Asia, and that it should not distract central banks from loosening to cushion the larger headwind—the US-induced trade shock. Real rates—the cost of borrowing adjusted for inflation—are at multi-year highs in the Philippines. That is not a good position from which to be facing a demand shock. We expect the BSP to continue cutting rates at each of its remaining meetings this year in August, October and December.”

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 24 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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