One more rate cut possible - BSP

The Bangko Sentral ng Pilipinas signaled it may deliver one final rate cut in 2026, with BSP Governor Eli Remolona Jr. saying the decision will depend heavily on incoming data amid weaker domestic growth and lingering fallout from the public infrastructure scandal.

- By KEISHA TA-ASAN

In a chance interview, Remolona stressed that any additional easing next year would be modest.

"Just one more (rate cut) depending on the data," he said.

The governor also dismissed the idea of an aggressive move, noting that a larger cut could send the wrong signal to financial markets.

He said slowing economic growth and weakening demand prompted the latest 25-basis-point cut on Dec. 11, noting that monetary easing can help support the demand side of the economy.

"But if we cut by 50 basis points or do an off-cycle move, it will worsen the loss of confidence because people will say, ah, the BSP is desperate," he said.

The BSP chief said any potential cut would be undertaken in a scheduled policy meeting.

"Our next meeting is in February. So if we're going to cut, it's during a regular meeting. Not off-cycle," he added.