BSP signals easing cycle nearing its end

The Bangko Sentral ng Pilipinas (BSP) signaled that its monetary policy easing cycle is nearing its end as inflation remains subdued and within target, even as it acknowledged that the outlook for domestic growth has weakened further amid governance concerns and uncertainty over global trade policy.

- By KEISHA TA-ASAN

In a statement, the BSP said the inflation outlook remains benign and inflation expectations are well anchored.

"On balance, the Monetary Board views the monetary policy easing cycle as nearing its end. Any further easing is likely to be limited and guided by incoming data," it said.

Headline inflation settled at 1.8 percent in December 2025, well within the BSP's forecast range of 1.2 to two percent for the month. This brought the full-year 2025 average to 1.7 percent, below the central bank's two to four percent target.

BSP Governor Eli Remolona Jr. welcomed the latest inflation print during a press conference organized by the Tuesday Club, his first event of the year, saying that even if inflation went up from November's 1.5 percent, the December inflation is "reasonably low."