Foreign banks see more BSP cuts

The widely anticipated interest rate cut by the Bangko Sentral ng Pilipinas (BSP) on Thursday, Dec. 11, would not be the end of its monetary easing, with foreign banks expecting further reductions early next year as the central bank seeks to help address slowing economic growth.

- By BEN ARNOLD DE VERA

Following a 25-basis-point (bp) reduction in the policy rate to 4.5 percent at the BSP Monetary Board’s (MB) final monetary policy meeting for 2025, Goldman Sachs Economics Research forecasts a terminal key interest rate of 4.25 percent through another 25-bp cut in the first quarter of 2026, a Dec. 5 report obtained by Manila Bulletin showed.