BSP cuts benchmark rate by 25 basis points

The Bangko Sentral ng Pilipinas (BSP) has lowered its benchmark rate by 25 basis points in response to inflation slowing to less than 1 percent in July.

The target overnight reverse repurchase rate is now set at 5 percent, down from 5.25 percent previously.

While the BSP's full-year inflation forecast remains at 1.7 percent, it noted that power rate adjustments and higher rice tariffs could potentially increase prices.

The monetary board observed steady domestic demand but expressed concern over US trade policies' potential impact on global economic growth.

Despite these concerns, the BSP maintained its outlook for inflation, emphasizing the need to monitor price drivers closely.