Overview

• The Monetary Board lowered the benchmark by 25 basis points to 4.75%, a move most economists did not expect.
• Policymakers said the growth outlook has weakened as a widening corruption probe into public infrastructure spending erodes business confidence.
• Governor Eli Remolona left the door open to further easing, including a potential move in December and additional cuts next year.
• September inflation rose to 1.7%, still below the 2–4% target range, providing room for a more accommodative stance.
• The peso weakened and equities slipped after the decision, and officials warned the 5.5–6.5% growth target is at greater risk, with a credible resolution to the graft issue urged.