MANILA, June 19 (Xinhua) -- The Philippine central bank on Thursday said it decided to reduce its target reverse repurchase rate by 25 basis points to 5.25 percent and the interest rates on the overnight deposit and lending facilities to 4.75 percent and 5.75 percent, respectively.
"The Monetary Board took this action as the outlook for inflation moderated," Bangko Sentral ng Pilipinas Governor Eli Remolona told a press conference.
The inflation forecast for 2025 fell from 2.4 percent to 1.6 percent. Meanwhile, forecasts for 2026 rose marginally from 3.3 percent to 3.4 percent and for 2027 from 3.2 percent to 3.3 percent.
"Inflation expectations remained well anchored," Remolona said.
Remolona said the monetary board also noted "indications of a deceleration in global economic activity, driven primarily by uncertainty over U.S. trade policy and the conflict in the Middle East."
"This would lead to slower growth in the Philippines. A rise in oil prices, electricity rate adjustments, and higher rice tariffs would add to inflationary pressures," he said.
"Emerging risks to inflation from rising geopolitical tensions and external policy uncertainty require closer monitoring," said Remolona, adding the monetary board will continue to assess the impact of prior monetary policy adjustments. ■
