October 17, 2024
MANILA – The Bangko Sentral ng Pilipinas (BSP) on Wednesday cut the policy rate again by 25 basis points to 6 percent, as cooling inflation provided enough room for further easing.
The decision was widely expected. An Inquirer’s poll of 10 economists correctly predicted today’s move by the Monetary Board, which will hold its next rate-setting meeting on Dec. 19.
What gave the BSP enough room to further slash local rates was the latest data that showed inflation retreated to a four-year low of 1.9 percent in September. Much of the slowdown last month came from softer food price growth, which sharply moderated to 1.4 percent.
That put the year-to-date headline inflation rate to 3.4 percent, well within the 2 to 4 percent target range of the central bank.