The Monetary Board, the policy-making body of the Bangko Sentral ng Pilipinas (BSP), on Thursday delivered its fourth interest rate cut for the year, reducing the overnight borrowing rate by another 25 basis points to 4.75 percent amid benign and within-target inflation outlook.sca
It also reduced the overnight deposit and lending facilities to 4.25 and 5.25 percent, respectively.
The BSP said that while potential adjustments in electricity rates and possible increases in rice import tariffs could add some upward pressures, the risks to inflation outlook are limited as price pressures are expected to ease.
“The Monetary Board likewise noted that the outlook for domestic economic growth has weakened,” it said.
“This outlook reflects in part the impact on business confidence of governance concerns about public infrastructure spending. Indications of moderating demand also reflect lingering uncertainty from the external environment,” the BSP said.
