KONTAN.CO.ID - MANILA. The Philippine central bank delivered a surprise interest rate cut on Thursday, its fifth reduction this year, as damage from a series of typhoons and surging coronavirus infections heap more pressure on the sputtering economy.
The Bangko Sentral ng Pilipinas (BSP) lowered the rate on the overnight reverse repurchase facility by 25 basis points to a new low of 2.0%. It also cut the rates on the overnight deposit and lending facilities to 1.5% and 2.5%, respectively.
Only two of 11 economists Reuters surveyed ahead of Thursday's policy review had expected the BSP to cut rates by a quarter point. Most of them had forecast the central bank would remain on hold as it assessed the impact of earlier easing.