The Monetary Board (MB) has decided yesterday to reduce the Bangko Sentral ng Pilipinas (BSP)’s key policy interest rates by 25 basis points to 4.25 percent for the overnight borrowing or reverse repurchase (RRP) facility and 6.25 percent for the overnight lending or repurchase (RP) facility, effective immediately.
The interest special deposit accounts (SDAs) were also reduced accordingly.
The MB’s decision is based on its assessment that the inflation outlook remains comfortably within the target range, with expectations well-anchored.
Latest baseline forecasts indicate that average annual inflation rates are likely to fall within the lower half of the 3 to 5 percent target range up to 2013.
Pressures on global commodity prices are seen to continue to abate amid weaker global growth prospects. However, the impact of strong capital inflows on domestic liquidity and the effect of geopolitical tensions in the Mena region on global oil supplies will continue to pose upside risks to inflation.
At the same time, the MB considers the overall balance of global economic activity to be tipping toward a further slowdown. Although the US economy has been showing signs of improvement, it remains vulnerable to financial market volatility amid continued concerns about long-term fiscal sustainability.
Meanwhile, the Euro area economy is notably weaker with interlocking sovereign debt and banking problems weighing down on global sentiment. Amid these developments, the Philippine economy is likely to face external headwinds in 2012.
While the Philippine economy continues to expand, sustained domestic spending is expected to compensate for weaker external demand.
Given these considerations, the MB has concluded that the benign inflation outlook allowed some scope for a reduction in policy rates to help boost economic activity and support market confidence.
The BSP shall continue to monitor emerging demand and price developments to ensure that monetary policy settings remain supportive of non-inflationary economic growth.
June 2025
Philippine Environment Month!
“Action for Nature, for the Future!”
Invoke Article 33 of the ILO Constitution
against the military junta in Myanmar
to carry out the 2021 ILO Commission of Inquiry recommendations
against serious violations of
Forced Labour and Freedom of Association protocols.
Accept National Unity Government (NUG)
of Myanmar. Reject Military!
#WearMask #WashHands #Distancing #TakePicturesVideosturesVideos
Monthly Observances:
1 Jun – World Day of Parents
5 Jun – World Environment Day
7 Jun – World Food Safety Day
8 Jun – World Oceans Day
12 Jun – World Day Against
Child Labour
15 Jun – World Elder Abuse Awareness Day
16 Jun – International Day of Family Remittances
17 Jun – World Day to Combat Desertification and Drought
20 Jun – World Refugee Day
25 Jun – Day of the Seafarer
27 Jun – Micro-, Small and Medium-sized Enterprises Day
Daily Observances:
First Saturday of July:
International Cooperative Day
in the Philippines
