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Philippines Cuts Interest Rate Amid Low Inflation Concerns

6/20/2025

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Story summary
  • The Bangko Sentral ng Pilipinas reduced its interest rate by 25 basis points to 5.25% due to low inflation.
  • Governor Eli Remolona suggested further cuts may occur in 2025.
  • Inflation has stayed below the 2-4% target for three consecutive months.
  • Rising oil prices and a weakening peso pose risks to the economy.
  • This rate cut seeks to bolster the Philippines' sluggish economic growth.