The Philippine central bank slashed the key interest rate on Thursday, citing a benign inflation outlook and slowing growth.
The Monetary Board of the Bangko Sentral ng Pilippinas, or BSP, decided to lower the overnight reverse repurchase facility rate by 25 basis points to 4.25 percent. The move was in line with economists' expectations.
"The Monetary Board believes that the benign inflation outlook provides room for a further reduction in the policy rate as a pre-emptive move against the risks associated with weakening global growth," the bank said.
The previous change in the rate was a surprise quarter-point reduction in May, which was the first since 2016, after the economy expanded at the weakest pace in four years in the first quarter.
The bank also reduced the reserve requirement for banks by 200 basis points spread across three instances from end-May to late July to 16 percent.
In November, the bank had raised its benchmark interest rate by 25 basis points to 4.75 percent.
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