Philippines Central Bank Cuts Rates by 0.25% as Governance Concerns Dampen Economic Outlook
Philippine central bank cuts rates fifth time amid corruption-driven growth slowdown.
The Philippine
PH central bank cut its key policy rate by 25 basis points to 4.50% on December 11, marking the fifth consecutive rate reduction and bringing borrowing costs to their lowest level in three years. The move, which met market expectations, comes as the central bank signals the easing cycle is nearing its end, with future policy decisions becoming increasingly data-dependent.
PH central bank cut its key policy rate by 25 basis points to 4.50% on December 11, marking the fifth consecutive rate reduction and bringing borrowing costs to their lowest level in three years. The move, which met market expectations, comes as the central bank signals the easing cycle is nearing its end, with future policy decisions becoming increasingly data-dependent.Of the 27 economists surveyed by Reuters, all but one predicted a 25 basis point cut, while the remaining economist expected a 50 basis point reduction. The decision reflects the central bank's response to weakening growth prospects overshadowed by corruption allegations surrounding infrastructure projects, which have dampened business confidence and domestic demand.
