BSP open to more rate cuts

The Bangko Sentral ng Pilipinas is open to delivering policy rate cuts as early as its first meeting in 2025, but easing measures will remain aligned with the central bank's forward guidance, BSP Governor Eli Remolona Jr. said.

- Keisha Ta-asan

"We would be open to a cut, given the data, of course," Remolona said in an interview with Bloomberg TV yesterday.

He said the BSP would continue to monitor core inflation as prices are expected to ease in 2025 before slightly picking up in 2026.

The central bank is also worried about risks, which could de-anchor inflation expectations. Thus, Remolona said a measured approach to easing would be appropriate to mitigate risks in a volatile global economic environment.

Geopolitical developments, in particular, are seen as inflationary.