BSP cuts policy rate to 4.5%, lowest in over three years

The Bangko Sentral ng Pilipinas (BSP) on Thursday lowered its benchmark policy rate by 25 basis points (bps) to 4.5%, marking lowest level in more than three years.

The Monetary Board lowered its benchmark lending rate by 25 bps for a fifth straight meeting.

At 4.5%, this is the lowest target reverse repurchase rate since September 2022.

It likewise trimmed rates on the overnight deposit and lending facilities by 25 bps each to 4% and 5%, respectively.

This was in line with a BusinessWorld poll conducted last week where 17 out of 18 analysts anticipated a 25-bp cut at the Board’s last meeting this year.

The central bank has so far lowered key borrowing costs by 200 bps since it began its easing cycle in August last year. It delivered a 25-bp cut at each of its meetings in April, June, August and October. — Katherine K. Chan