The Bangko Sentral ng Pilipinas reduced its overnight reverse repurchase rate by 25 basis points to 5.75% at its December 2024 monetary policy meeting, delivering the third consecutive cut of its current easing cycle.
Philippine growth had slowed to 5.2% year on year in the third quarter of 2024, and November inflation was 2.5%, within the 2–4% target.
THIRD CUT IN THE 2024 EASING CYCLE
The December reduction is the third occasion in 2024 on which the BSP has lowered its benchmark overnight rate. Each cut in the current cycle has been sized at 25 basis points.
The overnight reverse repo rate is the BSP's primary monetary policy instrument, setting the rate at which the central bank absorbs overnight excess liquidity from the commercial banking system.