BSP likely to cut interest rates by 25 basis points next week

The Bangko Sentral ng Pilipinas (BSP) is likely to cut benchmark interest rates by 25 basis points at its meeting next week amid stable inflation and a steady peso, according to Fitch Solutions' unit BMI.

BMI noted that the latest data shows February 2025 inflation figures at 2.1%, the slowest price hike since September 2024, supporting potential rate cuts.

BSP Governor Eli M. Remolona indicated there is a 'good chance' the Monetary Board will cut rates by 25 basis points at their April 10 meeting, as previously reported.

The central bank has already reduced benchmark interest rates by 75 basis points since August last year, bringing its policy rate to 5.75%.

BMI expects the BSP to further reduce borrowing costs this year, aligning with forecasts that the policy rate will be at 5% by yearend.