The Philippine central bank delivered a widely expected interest-rate cut to support the economy, warning about slowing global growth and geopolitical risks, the Wall Street Journal reported. Bangko Sentral ng Pilipinas cut its benchmark overnight reverse repurchase rate by 25 basis points to 5.25%, its second reduction so far this year. It lowered its benchmark lending rate to 5.75% from 6.00%. The central bank has now cut rates by 125 basis points since the beginning of the easing cycle in August last year. Thursday’s decision comes after the U.S.
Philippine inflation quickened within market expectations in October, giving the central bank room to sustain its easing cycle, Bloomberg reported. Consumer prices rose 2.3% year-on-year in October, matching median economists forecast in a Bloomberg survey and falling within the central bank’s estimate of 2% to 2.8% for the month. Food inflation accelerated as rice price gains snapped a downtrend due to base effects. While inflation ticked up after decelerating in September, average inflation for the past ten months was at 3.3%, still within the central bank’s 2%-to-4% goal.
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