The Bangko Sentral ng Pilipinas (BSP) has announced a reduction in its target reverse repurchase (RRP) rate by 25 basis points to 6.00% effective October 17, 2024. This decision also lowers the interest rates on overnight deposit and lending facilities to 5.50% and 6.50%, respectively.
The BSP revised its 2024 inflation forecast downward to 3.1% from 3.3%, while slightly increasing projections for 2025 and 2026 to 3.3% and 3.7%. The move aims to support economic growth amidst changing inflation dynamics.