BSP keeps key policy rate at 5.75% amid global uncertainty

The Bangko Sentral ng Pilipinas (BSP) Monetary Board unexpectedly maintained its key policy rate at 5.75% during its first meeting of 2025.

BSP Governor Eli Remolona Jr. cited significant uncertainty over global economic policies, particularly US trade policies, as the reason for keeping monetary policy steady.

Remolona clarified that the BSP is still on an easing trajectory and prefers to pause now and cut rates later rather than risk reversing course if materializing risks emerge.

The Monetary Board opted to pause to deepen their analysis of current global uncertainties, which are not yet fully captured by the central bank's economic models.

Interest rates on the overnight deposit and lending facilities were also kept unchanged at 5.25% and 6.25%, respectively.

The BSP may consider pausing again at its next policy meeting on April 3 and will likely resume easing once the uncertainties clear.