BSP cuts rates for the first time in nearly four years

Philippine central bank slashes key interest rate by 25 basis points to 4.5%

Move aims to boost economic growth amid global headwinds

The Bangko Sentral ng Pilipinas (BSP) cut its key interest rate by 25 basis points to 4.5% on Thursday, August 15, 2024. This is the first rate cut by the BSP in nearly four years.

The move is aimed at supporting economic growth amid global headwinds, such as the ongoing trade war between the United States and China and the slowdown in global economic growth.

The BSP said in a statement that the rate cut is "consistent with the BSP's assessment that the inflation outlook remains benign and that the risks to inflation are broadly balanced over the policy horizon."

The BSP also noted that the Philippine economy continues to grow at a "steady pace," but that there are "risks to the outlook, including the potential impact of global trade tensions and the slowdown in global economic growth."

The BSP's rate cut is likely to be welcomed by businesses and consumers, as it will reduce borrowing costs and boost economic activity.

Key points:

• BSP cuts key interest rate by 25 basis points to 4.5%
• Move aims to boost economic growth amid global headwinds
• BSP says inflation outlook remains benign
• Philippine economy continues to grow at a "steady pace"
• BSP's rate cut likely to be welcomed by businesses and consumers