FX.co ★ Philippines Central Bank Delivers 25bps Rate Cut

In April 2025, the Central Bank of the Philippines reduced its key interest rate by 25 basis points, bringing it to 5.5%, a move that was in line with market forecasts. This decision was influenced by a decline in inflation, with consumer prices increasing only 1.8% year-on-year in March, marking the slowest growth since May 2020 and falling below the central bank's target range of 2% to 4%. Additionally, the rate cut was intended to bolster the economy amid escalating global trade tensions, which have stoked fears of a wider economic downturn. In 2024, the Philippine economy grew by a revised 5.7%, slightly underperforming against government targets, primarily due to typhoon-related disruptions that curbed consumer spending. Concurrently, the rates for overnight deposit and lending facilities were also lowered to 5% and 6%, respectively.