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Poll of economists: BSP rate cut looms as inflation slows
Financial institutions anticipate the Bangko Sentral ng Pilipinas (BSP) will cut interest rates further this year, with potential reductions possible as early as next month.
The BSP stated that the April inflation rate of 1.4 percent is consistent with its assessment of a manageable inflation environment.
This development, driven largely by falling food prices including rice, gives the BSP more room to proceed with its easing cycle.
Economists from Nomura revised their forecasts, expecting inflation to remain well below target in 2025 and 2026.
Nomura Global Markets Research expects the central bank to deliver an additional 75 basis points of rate cuts this year, bringing the total to 175 basis points in this cycle.
The BSP has so far slashed rates by 100 basis points since it started its easing cycle in August 2024.
Last month, the BSP delivered a 25-basis-point reduction in key policy rates.
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See how different news organizations are covering this story. Below are the original articles from various Philippine news sources that contributed to this summary.
Philippine inflation slowed to 1.4 percent in April 2025, the slowest rate in over five years and lower than economists' and the BSP's forecasts.
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The Bangko Sentral ng Pilipinas (BSP) forecasts April inflation to be between 1.3% and 2.1%, potentially falling below 2%.
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Treasury bill rates have decreased following dovish signals from the Bangko Sentral ng Pilipinas (BSP) about potential interest rate cuts.
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The Philippine Stock Exchange Index (PSEi) recovered the 6,400 mark, closing at 6,418.69, a 0.93 percent gain, driven by positive investor sentiment from a slower April inflation rate and strong corporate earnings.
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