The Daily Tribune
BSP likely to cut rates again in December – BMI
Analysts anticipate the Bangko Sentral ng Pilipinas (BSP) will implement additional policy rate cuts, with BMI predicting a 25-basis-point cut in December 2025 and another 50 basis points in 2026, bringing the key policy rate to 4.0% by 2026.
This projection follows the Monetary Board's unexpected 25-basis-point reduction last week, which brought the key policy rate to 4.75%.
BSP Governor Eli M. Remolona, Jr. linked the easing move to a decline in business sentiment, partly due to concerns over corruption allegations.
BMI expects the Philippine economy to grow by 5.4% this year, slowing to 5.2% in 2026, which is below the government's growth targets.
The deceleration in growth is attributed to weak business sentiment stemming from corruption issues and trade uncertainty, including the impact of a US-Philippines trade deal.
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The Bangko Sentral ng Pilipinas (BSP) unexpectedly lowered its key policy interest rate by 0.25 percentage point to 4.75 percent, marking the lowest rate in three years.
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