BSP eyes 50 basis points more rate cuts in 2024

Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr. indicated that more rate cuts are possible for the remainder of 2024, with a potential total reduction of 50 basis points.

During a forum at the Asian Development Bank, Remolona said that the BSP has policy meetings in October and December, where further reductions of 25 basis points each could be considered.

The Monetary Board recently lowered key interest rates by 25 basis points to 6.25 percent during its last meeting.

Headline inflation eased to 3.3% in August from 4.4% in July, with September's data expected on October 4.

Remolona emphasized that the BSP focuses on projections for one year ahead due to the delayed effects of monetary policy changes and will continue monitoring macroeconomic indicators.

The central bank is also working on initiatives to deepen capital markets, including enhancements to short-term benchmarks via peso interest rate swaps and repurchase agreements for government securities.