At its monetary policy meeting Thursday, the Monetary Board decided to reduce the BSP’s Target Reverse Repurchase (RRP) rate by 25 basis points to 4.75 percent.

This is the fourth decrease this year.

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

The outlook for inflation is benign and well within the target range. Inflation expectations remain well-anchored.

Potential electricity rate adjustments and possible increases in tariffs on rice imports could add some upward pressures. Nonetheless, the risks to the inflation outlook are limited as price pressures are expected to ease.

The Monetary Board likewise noted that the outlook for domestic economic growth has weakened. This outlook reflects in part the impact on business confidence of governance concerns about public infrastructure spending. Indications of moderating demand also reflect lingering uncertainty from the external environment.

On balance, the Monetary Board sees scope for a more accommodative monetary policy stance. The favorable inflation outlook and moderating domestic demand provide room to further support economic activity. As the impact of earlier policy action works through the economy, the BSP will remain attentive to emerging risks while maintaining price stability conducive to sustainable growth and employment. Bangko Sentral ng Pilipinas