Philippines Lowered Key Interest Rate

Philippines’ central bank has cut rates for the second time this year, joining a growing wave of monetary easing across Asia in a bid to boost its economy after growth slowed.

Bangko Sentral ng Pilipinas, the country’s central bank, trimmed its benchmark rate by 25 basis points to 4.25%, joining central banks in India and New Zealand, which all cut rates on Wednesday.

The cut came as data released earlier in the day showed that growth in the south-east Asian country slowed to 5.5% year on year in the three months to June, down from 5.6% in previous quarter and the lowest reading since 2015.

The country’s manufacturing industry showed weakness, growing 3.7% compared with service sector growth of 7.1%.

Headline inflation fell to a two-year low of 2.4% in July according to data released earlier this week, down from 2.7% in the previous month. 

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