The central bank of the Philippines left its key overnight reverse repurchase facility rate unchanged at 4.5% on its June 20th 2019 meeting, while markets had expected it at 4.25%. Policymakers said the decision remains consistent with the manageable inflation outlook and firm domestic growth prospects, unveiling that a prudent pause allows it to observe and assess the impact of prior monetary adjustments. The bank noted the uptick in inflation to 3.2% in May from 3% in April, which is likely to be temporary and still within the 2-4% target range. Also, the BSP cut its inflation forecasts for 2019 to 2.7% from 2.9% and for 2020 to 3% from 3.1%, amid declining oil prices and the prospect of a stronger peso. Interest Rate in Philippines averaged 7.84 percent from 1985 until 2019, reaching an all time high of 31 percent in January of 1985 and a record low of 3 percent in June of 2016.
Interest Rate in Philippines is expected to be 4.50 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Philippines to stand at 4.00 in 12 months time. In the long-term, the Philippines Interest Rate is projected to trend around 3.50 percent in 2020, according to our econometric models.