BSP seen to cut rates by 25 basis points

The Bangko Sentral ng Pilipinas (BSP) is expected to implement a 25-basis point interest rate cut this Thursday, April 10, potentially lowering the key policy rate to 5.5 percent.

This move is supported by a sustained deceleration in inflation, with the March figure dropping to 1.8 percent, and is anticipated by all 17 analysts surveyed in a BusinessWorld poll.

Economists believe the favorable inflation data and US tariff policy provide sufficient room for the BSP to resume its rate-cutting cycle.

The central bank kept interest rates steady in February, but previously slashed borrowing costs by a total of 75 basis points in 2024.

Analysts predict a gradual cut, citing below-expected March inflation and the need to underpin economic growth amidst higher global tariffs.

Some economists project three BSP rate cuts this year to spur economic growth, while also aiming to alleviate household budget pressures and support the domestic economy.