Philippines Cuts Rates as Korean Growth Slows on Europe

The Philippines unexpectedly cut interest rates and South Korea reported the slowest economic growth in almost three years as Europe’s debt crisis weighs on exports and increases the likelihood of more easing in Asia.

Bangko Sentral ng Pilipinas reduced the rate it pays lenders for overnight deposits to a record-low 3.75 percent from 4 percent, a decision predicted by four of 16 economists in a Bloomberg News survey. The Bank of Korea said today that gross domestic product expanded 2.4 percent in the three months through June from a year earlier.