BSP keeps easing bias, but flags confidence as key growth driver

AT UNICAPITAL'S 2026 START-OF-THE-YEAR OUTLOOK:

- BY RUELLE CASTRO Reporter

THE Bangko Sentral ng Pilipinas (BSP) said its monetary policy stance remains tilted toward easing, though policy decisions will be made on a meeting-by-meeting basis as confidence—not just liquidity—shapes the growth outlook.

BSP Monetary Policy Sub-Sector Officer-in-Charge Dennis Lapid said further reductions in banks’ reserve requirements “are still on the table” to support the economy.

Lapid was speaking at a market outlook briefing hosted by Unicapital Securities Corp. on Tuesday, dubbed “2026 Start-of-the-Year Outlook: When the Dust Settles.”

The central bank has already delivered cumulative rate cuts of 225 basis points so far since adopting an easing cycle in August 2024, and signaled openness to additional liquidity measures if needed.

Lapid stressed, however, that monetary easing alone may not restore the desired momentum.