ABS-CBN
BSP seen cutting rates by 50 bps in 2026: Metrobank
Metrobank forecasts that the Bangko Sentral ng Pilipinas (BSP) will lower policy rates by a total of 50 basis points this year.
The projected terminal rate for the BSP's target reverse repurchase (RRP) rate is 4.00% by the end of 2026, which would be the lowest since August 2022.
This anticipated easing is supported by the expectation that inflation will remain manageable, although it may climb to about 3.3% this year mainly due to base effects.
Demand-side pressures and potential higher import costs from tariffs and a weaker peso could also exacerbate inflation.
This forecast follows the BSP's December decision to cut policy rates by 25 basis points, bringing the RRP to 4.50%.
As the BSP moves policy rates to neutral and the investment environment improves, investment activity is expected to pick up, and private consumption should also improve with anticipated increases in government cash transfers.
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