Philippine Central Bank Lowers Rate By 25 Bps

(RTTNews) - The Philippine central bank unexpectedly reduced its key interest rates by 25 basis points on Thursday.

The Monetary Board of the Bangko Sentral ng Pilipinas decided to reduce the policy rate by 25 basis points to 4.75 percent. The bank was expected to hold the rate at 5.00 percent.

The interest rates on the overnight deposit and lending facilities were adjusted to 4.25 percent and 5.25 percent, respectively.

"On balance, the Monetary Board sees scope for a more accommodative monetary policy stance," the bank said in a statement. "The favorable inflation outlook and moderating domestic demand provide room to further support economic activity," the bank added.