Remblomu Another rate cut possible

The Bangko Sentral ng Pilipinas (BSP) has signaled a possible interest rate cut in December, following the slower-than-expected economic growth in the third quarter and the within-target inflation print in October.

- KEISHA TA-ASAN

On the sidelines of the BSP-IMF Systemic Risk Dialogue in Cebu, BSP Governor Eli Remolona Jr. said that either a 25-basispoint rate cut or a pause is on the table at their final policy meeting this year on Dec. 19.

"We're still in the easing cycle. Either we cut in December or we cut in the next meeting. But gradual cuts only, not (aggressive)," Remolona told reporters.

He also said a total of 100 basis points of rate cuts could be expected next year. "It's not exact, it could be bigger or lower. But that's in the ballpark."

The BSP lowered its key interest rate by 25 basis points to six percent last Oct. 16, bringing its total rate cuts to 50 basis points since it started its easing cycle in August.

Prior to the cuts, the BSP kept borrowing costs steady for six straight meetings starting November 2023.