MANILA, Sept. 26 (Xinhua) -- The Philippine central bank decided on Thursday to cut the key interest rate by 25 basis points to 4.0 percent, the third for this year.
The Bangko Sentral ng Pilipinas (BSP) or the central bank of the Philippines, said in a statement that the decision of reducing the rate "is based on its assessment that price pressures have eased further since the previous meeting."
"Inflation expectations also remain well-anchored within the inflation target range based on the BSP's survey of private-sector economists," the statement read.
Given these considerations, the BSP believes that the benign inflation outlook provides room for a further reduction in the policy rate.
Meanwhile, the BSP said lowing the rate can support the Philippine economic growth and reinforce market confidence, which will "serve as a buffer against global headwinds".
This is the third time that the BSP cut key rates this year. The first was on May 9 and the second was just August 8, each by 25 basis points.
