Philippines cuts rates by 25bp
Inflation moving towards target, central bank says
The Philippines’ central bank today (August 15) reduced its policy rate by 25 basis points to 6.25%, having previously held it for 10 months.
The Central Bank of the Philippines (BSP) said it expects inflation to decline towards its 2–4% target range, even though it went up in July. Headline inflation rose to 4.4% that month, up from 3.7% in June.
Some observers were surprised by the BSP’s decision to cut rates, with ING calling it a “gutsy move”.
“The recent spike in inflation back above 4% made
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