A rate cut is “not assured” when the Bangko Sentral ng Pilipinas (BSP) Monetary Board meets next week, despite a cooling economy, BSP Governor Eli Remolona, Jr. said on Wednesday, December 3.
The central bank is set to review borrowing costs on December 11 to cap the year. Further easing will depend on economic conditions.
“I think we all agree that for 2025, growth will be slow,” Remolona said.
“We think maybe [growth will be] between 4% and 5%. But the recovery should start by 2026, maybe middle of 2026. And then we should be back on track by 2027.”
The BSP’s overnight policy rate stands at 4.75% after cuts totaling 175 basis points since the start of its easing cycle in August 2024.
The central bank emphasized that a below-target pace of growth would influence any decision on further rate adjustments.