The ocean and the beach in the Philippines

Philippines Interest Rate

Philippines Interest Rate

Target Reverse Repurchase in Philippines

The target reverse repurchase rate ended 2022 at 5.50%, up from the 2.00% end-2021 value and up from the reading of 3.50% a decade earlier. For reference, the average target reverse repurchase rate in the Asia-Pacific region was 3.70% at the end of 2022. For more interest rate information, visit our dedicated page.

Philippines Interest Rate Chart

Note: This chart displays Policy Interest Rate (%) for Philippines from 2014 to 2023.
Source: Macrobond.

Philippines Interest Rate Data

2019 2020 2021 2022 2023
Target Reverse Repurchase (RRP) Rate (%, eop) 4.00 2.00 2.00 5.50 6.50
91-Day Treasury Bill (%, eop) 3.00 1.02 1.13 4.09 5.00
10-Year Bond Yield (%, eop) 4.45 3.02 4.82 7.01 5.95

Central Bank decides to decrease rates in October

Latest bank decision: At its meeting on 17 October, the Central Bank decided to reduce the Target Reverse Repurchase (RRP) Rate by 25 basis points to 6.00% with the overnight deposit and lending facilities rates adjusted to 5.50% and 6.50% respectively.

Monetary policy drivers: The Central Bank's decision was influenced by the fact that inflation is currently within the target range of 2.0–4.0%. Moreover, the Bank expects inflation to remain within this target going forward, and it commented that market inflation expectations were well-anchored.

Policy outlook: The Central Bank stated it would maintain a measured approach in its easing cycle going forward. For our panelists, this is likely to translate into an additional rate cut at the Bank’s next meeting in December, followed by over 100 basis points of rate cuts in 2025.

Panelist insight: Giving her take on the outlook, ING analyst Deepali Bhargava said: “We expect the BSP to continue to cut policy rates by another 25bp in December for the following reasons: 1. September CPI inflation hit a four-year low of 1.9%, with year-to-date CPI inflation well within the BSP target band of 2-4%. We expect CPI inflation to average 2.9%, well below the mid-point of the target band in 2024. The Philippines should benefit from improving global food supplies and lower rice prices following India's lifting of its export ban on rice. 2. The real policy rate at 4%+ has hit a fresh high at a time when GDP growth is expected to remain below the government’s target of 6-7%.”

Consensus Forecasts and Projections for the next ten years

How should you choose a forecaster if some are too optimistic while others are too pessimistic? FocusEconomics collects Philippine interest rate projections for the next ten years from a panel of 22 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts and averaged to provide one Consensus Forecast you can rely on for each indicator. By averaging all forecasts, upside and downside forecasting errors tend to cancel each other out, leading to the most reliable interest rate forecast available for Philippine interest rate.

Download one of our sample reports to visualize what a Consensus Forecast is and see our Philippine interest rate projections.

Want to get access to the full dataset of Philippine interest rate forecasts? Send an email to info@focus-economics.com.

Latest Global Monetary Policy News

Free sample report

Interested in economic reports, analysis and data? FocusEconomics provides data, forecasts and analysis for hundreds of countries and commodities. Request your free sample report now.

Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest X Download Fullscreen