BSP: 'Further' rate cuts after 25 bps

The Bangko Sentral ng Pilipinas’ (BSP) much-anticipated quarter-point interest rate cut is expected to bolster local economic expansion, especially as global headwinds, including United States (US) tariffs, could weigh on Philippine growth.

- By DERCO ROSAL

Governor Eli M. Remolona Jr. stated at an April 10 press conference that the Monetary Board (MB)—the BSP’s highest policy-making body—“noted the more challenging external environment, which would dampen global GDP [gross domestic product] growth and pose a downside risk to domestic economic activity.”

As expected, the MB lowered the key policy rate by 25 basis points (bps) to 5.5 percent on Thursday, April 10, as the central bank resumed monetary policy easing after the unexpected pause in February due to global economic uncertainties at that time.