The Philippines’ central bank held its benchmark interest rate at 6.25% for the third consecutive meeting. July saw the country’s headline inflation rate drop to a 16-month low of 4.7%, which is still above but approaching the target range set by policymakers at 2%-4%. Inflation predictions for 2023 and 2024 were adjusted to 5.6% and 3.3%, respectively. However, economic growth outlooks appear challenging, with inflation risks leaning towards the upside. The Q2 2023 economy growth rate dipped to its lowest in over two years at 4.3%, attributed to decreased domestic demand and a drop in government spending.