MANILA - Borrowers are already enjoying lower interest rates on loans, thanks to a series of rate cuts implemented by the central bank.

According to a recent report by the Bangko Sentral ng Pilipinas (BSP), bank lending rates have already fallen by a total of 140 basis points since December, the month when the central bank started trimming its key policy rates.

"The cumulative policy rate cut of the BSP from December 18 to July 9 appeared to have been passed on partially by banks to their borrowers," the BSP noted.

The central bank has cut its benchmark rates by a total of 200 basis points since late last year to soften the blow of the global recession on the local economy. The rate cuts were meant to encourage banks to lower their lending rates to help spur consumption and business investments.

The BSP's overnight borrowing and lending rates now stand at record lows of 4% and 6%, respectively.

BSP governor Amando Tetangco said they are maintaining an accommodative stance until official data show a shift in inflation trends.

Inflation slowed to a fresh 22-year low of 0.1% in August from a year earlier, with the core inflation rate for the same month hitting its lowest level since December 2007.