Bangko Sentral ng Pilipinas sees at least two more rate cuts in 2025
Bangko Sentral ng Pilipinas Governor Eli Remolona Jr. speaks to members of the Tuesday Club. (Photo by Ian Nicolas P. Cigaral)
MANILA, Philippines — The Bangko Sentral ng Pilipinas expects to reduce its benchmark interest by at least twice more this year. It currently stands at 5.5 percent.
BSP Governor Eli Remolona Jr. said this on Friday, citing “plenty of room” for monetary easing amid cooling inflation and a more stable external environment.
“I think at least two cuts,” Remolona said in a media briefing when asked about the central bank’s policy outlook for the rest of the year.
‘Plenty of room’
He said the latest economic data indicates that the BSP has plenty of room to cut considering the latest inflation trend. Hence the central bank can proceed with easing policy rates without risking price stability.
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Inflation eased to 1.4 percent year-on-year in April from 1.8 percent in March. This was on the back of slower price increase in food and lower transport costs.
In April, the rate of increase in prices of goods that the average Filipino household commonly buys also settled within the 1.3 to 2.1 percent forecast range of the BSP for last month.
Remolona acknowledged the impact of government efforts outside of monetary policy in helping manage inflation.
“I don’t want to speak about specific policies, but we find that what we call the non-monetary measures that the administration is putting in place, they seem to help with inflation,” he said.
