The central bank of the Philippines left its key overnight reverse repurchase rate unchanged at 4.75 percent on December 13th 2018, after hiking 25bps in the previous meeting, as widely expected. Policymakers said that the decision is based on the diminishing inflationary pressures as constraints on food supply eased after the implementation of various non-monetary measures. The Committee noted that the annual inflation rate fell to 6.0 percent in November from 6.7 percent in October. Also, the BSP cut its inflation outlook for 2018 to 5.2 percent from 5.3 percent for 2018; to 3.18 percent from 3.5 percent in 2019 and to 3.04 percent from 3.3 percent in 2020. The interest rates on the overnight lending and deposit facilities were likewise held steady. Interest Rate in Philippines averaged 7.89 percent from 1985 until 2018, 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 4.75 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 4.50 in 12 months time. In the long-term, the Philippines Interest Rate is projected to trend around 3.75 percent in 2020, according to our econometric models.