Philippines Eyes More Rate Cuts as Graft Scandal Hits Confidence

The Philippine central bank unexpectedly cut its benchmark interest rate by a quarter point on Thursday and signaled it may ease further, warning the economic outlook has deteriorated as a government graft scandal hits confidence.

The Bangko Sentral ng Pilipinas reduced the overnight target reverse repurchase rate by 25 basis points to 4.75%, as predicted by only seven of 26 economists in a Bloomberg News survey. The rest expected the BSP to pause an easing cycle that began over a year ago.