BSP slashes policy rate by 25 bps to 4.5%

The Bangko Sentral ng Pilipinas (BSP) has lowered its benchmark policy rate by 25 basis points to 4.5%, marking the fifth consecutive policy rate cut.

This brings the target reverse repurchase rate to its lowest level in over three years, with the overnight deposit and lending facilities also reduced by 25 bps each.

BSP Governor Eli Remolona Jr. hinted that the current monetary policy easing cycle is nearing its end, with any further easing to be guided by incoming data.

The central bank has cumulatively lowered key borrowing costs by 200 basis points since initiating its easing cycle in August 2024.