Two more rate cuts possible this year, says BSP Gov. Remolona
Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr. on Thursday hinted at the possibility of two more rate cuts this year, as he said the current inflation and economic growth levels give the central bank room for further easing.
Speaking with reporters, Remolona said there could be two more rate cuts this year, with three more policy meetings scheduled this year on August 26, October 6, and December 9.
'Pwede, pwede naman. Meron pa tayong August, meron pa tayong October, December [It's possible. We still have August, we still have October, December],' Remolona said on the sidelines of the BSP's 32nd Anniversary Multimedia Exhibit in Manila.
'There's room because inflation is low and growth is a bit lower also, except that, the cuts cannot really compensate entirely for the slowdown in growth,' he told reporters.
Inflation clocked in at 1.3% in May, marking the fourth straight month of deceleration. Official figures for June are scheduled to be released on Friday, July 4. The BSP projects this to possibly have hit as high as 1.9% in June.
Economic growth, meanwhile, was recorded at 5.4% in the first quarter of 2025, with Philippine economic managers expecting the full-year expansion to average between 5.5% to 6.5% this year.
'Kasi 'yung slowdown in growth, dahil sa uncertainty 'yun eh. Napo-postpone 'yung big-ticket consumption items, napo-postpone investments, tapos 'yung exports dahil bumagal din ang ano eh, global growth,' Remolona said.
(The growth slowdown is because of uncertainty. The big-ticket consumption items are being postponed, investments are being postponed, and exports have decelerated because of the slower global growth.)
The Monetary Board of the BSP last month cut key policy rates by 25 basis points, bringing the target reverse repurchase rate to 5.25%, the overnight deposit rate to 4.75%, and the overnight lending facility rate to 5.75%.
'If things remain on track, then we will probably cut once more, but depending on the data… But for now things remain on track. Isa pa [One more],' Remolona said in June. — BM, GMA Integrated News
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