The central bank has cut its key rate by 150 basis points since August 2024 as inflation slowed, backed by declining rice prices
[MANILA] Philippine inflation quickened in September but stayed below the central bank’s target range, giving monetary authorities space to reduce the benchmark interest rate further this year.
Consumer prices rose 1.7 per cent last month from a year ago, the Philippine Statistics Authority said on Tuesday (Oct 7). That was below the 1.9 per cent median estimate in a Bloomberg News survey and followed the 1.5 per cent rate in August.
The Bangko Sentral ng Pilipinas has projected inflation in September to come within a range of 1.5 to 2.3 per cent, compared with its 2 to 4 per cent goal.
But the next interest rate cut may not happen this week, given the peso’s recent depreciation against the US dollar, which could lift energy and food prices. The central bank has two policy meetings left for this year, one on Thursday and another in December.
The central bank has cut its key rate by 150 basis points since August 2024 as inflation slowed, backed by declining rice prices.
Governor Eli Remolona has signalled an end to the easing cycle after another quarter-point cut in its overnight target reverse repurchase rate to 5 per cent in August, the lowest in almost three years. He has said that there’s room for another interest rate cut if demand weakens. BLOOMBERG
