BSP signals more interest rate cuts

After the widely expected 25-basis-point (bp) cut in key interest rates, Bangko Sentral ng Pilipinas (BSP) Governor Eli M. Remolona Jr. signaled the possibility of two more rate cuts this year.

- BY DERCO ROSAL

"Depending on the data, we'll cut twice more; depending on the data, we may not cut at all," Remolona told a media briefing after the policy-setting Monetary Board (MB) decided to reduce the policy rate to 5.25 percent, from 5.5 percent previously, on Thursday, June 19.

On balance, the MB "sees the need for a more accommodative monetary policy stance," the Governor said, adding that "emerging risks to inflation from rising geopolitical tensions and external policy uncertainty require closer monitoring."

Prior to this hint, Remolona said the BSP could proceed with trimming the rate "once more, if things remain on track." He noted that for now, "things remain on track," so at least a quarter-point cut is expected for the remainder of 2025.