MANILA, Dec. 11 (Xinhua) -- The Philippine central bank on Thursday decided to reduce its target reverse repurchase rate by 25 basis points to 4.50 percent and the interest rates on the overnight deposit and lending facilities to 4 percent and 5 percent, respectively.
"This is the eighth cut since August 2024. Thanks to declining inflation, we've been able to reduce interest rates by a total of 200 basis points from 6.5 percent to 4.5 percent," Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona told a press conference.
"The cut will revive economic activity a bit at a time when painful governance issues around infrastructure investments have weakened government spending, business confidence, and domestic demand," he added.
Remolona said the BSP "may be nearing the end of its easing cycle, with any future easing likely to be limited."
Looking ahead, he said the BSP will ensure that overall policy settings remain consistent with maintaining price stability conducive to sustainable economic growth. ■