MANILA :The Philippine central bank cut its key policy rate by 25 basis points for a fourth straight meeting on Thursday, against market expectations, saying the outlook for growth has weakened and inflation expectations are well anchored.
Only nine out of 23 economists polled by Reuters had forecast a 25 basis point cut. Fourteen of them expected the Bangko Sentral ng Pilipinas to keep rates steady.
The policy rate is now at 4.75 per cent, its lowest level in three years.
“The favourable inflation outlook and moderating domestic demand provide room to further support economic activity,” the BSP said in a statement.
The decision comes after inflation rose to a six-month high of 1.7 per cent in September, but was still below the 2 per cent to 4 per cent target range for the year.
