BSP: Rate cut 'possible' in December

THE BANGKO SENTRAL ng Pilipinas (BSP) could cut policy rates again at its December meeting, its governor said on Tuesday.

- Katherine K. Chan

“I would say it’s possible,” BSP Governor Eli M. Remolona, Jr. told reporters when asked about the likelihood of rate cuts at the Monetary Board’s Dec. 11 meeting.

However, he ruled out a jumbo cut, noting that the next rate cut will likely be another “baby step” or by 25 basis points (bps).

The Monetary Board delivered a 25-bp cut at its Oct. 9 meeting, bringing the benchmark policy rate to an over three-year low of 4.75%, as both its economic outlook and investor confidence weakened amid the flood control corruption scandal.

It has so far lowered borrowing costs by a total of 175 bps since it began its easing cycle in August 2024.

Another rate cut at the Monetary Board’s last meeting this year on Dec. 11 would mark its fifth consecutive cut since April.