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BSP unlikely to cut interest rates 3 times
Manila Bulletin
|August 12 2025
With an already narrow output gap and the economy in a “goldilocks” or ideal state, the Bangko Sentral ng Pilipinas (BSP) said slashing key borrowing costs further by three-quarters of a point is unlikely, with two cuts more likely than one.
“T think two is more likely than one. Two is still more likely. Three is unlikely,” BSP Governor Eli M. Remolona Jr. told reporters on the sidelines of EJAP Economic Forum 2025 on Monday, Aug. 11.
This was Remolona’s answer when asked about the likelihood of just one cut despite the nearly six-year lows in inflation rates in recent months, and the gross domestic product (GDP) only modestly expanding by 5.5 percent in the second quarter from 5.4 percent in the first quarter.
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