MANILA: The Philippine central bank cut its key policy rate by 25 basis points to 5.0% on Thursday, as expected, its third consecutive reduction.

The move followed data this month showing inflation eased to a near six-year low of 0.9% in July, while the economy grew by an annual 5.5% in the second quarter, its fastest annual pace in a year.

All 26 economists in a Reuters poll had expected the Bangko Sentral ng Pilipinas to trim its Target Reverse Repurchase Rate, or RRP, by a quarter point.

In a statement, it said its outlook for inflation was "broadly unchanged" with a forecast of 1.7% for this year, 3.3% for next year and 3.4% for 2027.

But it warned that possible electricity and rice price hikes could raise inflationary pressures and said emerging risks would also require further monitoring.

"Going forward, the BSP will safeguard price stability by ensuring monetary policy settings are conducive to sustainable economic growth and employment," it said. - Reuters