Philippine central bank unexpectedly cuts interest rates by 50 basis points

[MANILA] The Philippine central bank unexpectedly cut its benchmark interest rate by a further 50 basis points to a new low on Thursday, sustaining an aggressive move to support the domestic economy ravaged by the new coronavirus.

The cut, the fourth such move this year, took the rate on the overnight reverse repurchase facility to a record low of 2.25 per cent. The rate reductions in a span of five months from February totalled 175 basis points.

Eight out of 12 economists in a Reuters survey ahead of the policy decision had expected the central bank to keep the rate steady, while the other four had forecast a 25 basis point cut.

REUTERS