Philippines Central Bank Holds Rate Steady

The Philippine central bank on Thursday left its key interest rate unchanged after slashing it in both August and September.

The Monetary Board of the Bangko Sentral ng Pilippinas, or BSP, on Thursday decided leave the overnight reverse repurchase facility rate unchanged at 4.00 percent. The move was in line with economists' expectations.

The previous change in the rate was a quarter-basis point cut in September that came after a similar reduction in August. In May, the bank had lowered the rate by a quarter-basis point, which was the first reduction since 2016.

Capital Economics economist Alex Holmes expects the bank to cut rates again due to the weak outlook for growth.

"Having cut rates by a cumulative 75bps so far this year, we think today's hold marks a pause rather than an end to the easing cycle and we are sticking with our forecast for a further 50bps of cuts in 2020," Holmes said.

"The Bank described its decision today as a "prudent pause", leaving the door open to further easing."

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