Manila, Philippines – A rate cut is “not assured” when the policymaking Monetary Board meets next week, but a cooling economy at a pace below desired would be a factor in where borrowing costs will go, Bangko Sentral ng Pilipinas Governor Eli Remolona, Jr. said on Wednesday, Dec. 3.
The central bank is scheduled to review rates on Dec. 11 to cap the year, but further easing is “not assured,” the Inquirer reported.
“I think we all agree that for 2025, growth will be slow,” Remolona was quoted by the Inquirer as saying.
“We think maybe [growth will be] between 4 percent and 5 percent. But the recovery should start by 2026, maybe middle of 2026. And then we should be back on track by 2027,” he added.
The BSP’s overnight policy rate is 4.75 percent, after the central bank lowered it by a total of 175 basis points since it began its easing cycle in August 2024.
