IMF sees 50-bp BSP rate cuts

Citing risks that the economy may accelerate more slowly than expected and that inflation will remain subdued, the International Monetary Fund (IMF) has priced in a cumulative additional 50 basis points (bps) cut in the key interest rate by the first quarter of 2026.

- By DERCO ROSAL

According to the Washington-based multilateral lender, the Bangko Sentral ng Pilipinas (BSP) is seen further easing after its eight consecutive rate cuts to 4.5 percent from the 6.5-percent peak in August last year.

If this forecast is realized, the terminal rate in 2026 will stand at four percent.