MANILA, April 10 (Xinhua) -- The Philippine central bank said on Thursday that its Monetary Board decided to reduce its target reverse repurchase rate by 25 basis points to 5.5 percent and the interest rates on the overnight deposit and lending facilities to 5 percent and 6 percent, respectively.

Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona told a press conference that the latest inflation forecasts have declined from the forecasts of the February policy meeting.

"The risk-adjusted inflation forecast for 2025 fell from 3.5 percent to 2.3 percent, while forecast for 2026 declined from 3.7 percent to 3.3 percent," the central bank chief said.

Meanwhile, Remolona said the risk-adjusted inflation forecast for 2027 stands at 3.2 percent, and inflation expectations also remain within target.

He said risks to inflation outlook have also eased and continue to be broadly balanced from 2025 to 2027.

"Upside pressures come from possible increases in transport charges, meat prices, and utility rates. Meanwhile, downside risks are linked to the continuing effects of lower tariffs on rice imports and the expected impact of weaker global demand," he said.

Remolona said that the Monetary Board noted more challenging external environment, which would dampen global growth and pose a downside risk to domestic economic activity.

Remolona said the BSP will continue to take a measured approach in deciding on further monetary easing. Enditem

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