Philippine Central Bank Cuts Interest Rate by Expected 25 Basis Points

Forex - The Bangko Sentral ng Pilipinas (BSP) has reduced the policy interest rate for the third time this year, as widely expected, due to inflation being on target and a slowdown in economic growth. According to the statement from BSP, the overnight repo borrowing rate, which serves as the benchmark, has been lowered from 6.00% to 5.75%. The bank also decreased the reference lending rate from 6.50% to 6.25%. With this decision, the BSP continues the easing cycle it initiated in August. In contrast to the Philippines, other banks in Asia, including Thailand and Indonesia, chose to pause their easing this week, immediately before the Federal Reserve's rate cut yesterday. Economic growth in the country during the third quarter came in at its slowest level since the second quarter of 2023, while inflation continues to remain on target.