BSP eyes possible rate cut in Dec or Jan

Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr. stated on Tuesday that despite slower economic growth in the third quarter, the central bank remains in an easing cycle but may pause depending on inflation data.

Remolona indicated a possible 25 basis point rate cut either in December or during the Monetary Board's next meeting in 2025, emphasizing gradual adjustments and noting that it depends on upcoming data.

Since August, the BSP has reduced borrowing costs by a total of 50 basis points, bringing the benchmark to 6%, with previous cuts made in August and October.

Remolona expressed optimism about economic recovery in the fourth quarter but noted that third-quarter growth of 5.2% was an aberration from expectations.

For 2025, the BSP chief said that the Monetary Board could likely deliver rate cuts at the 100-basis-point range, though he noted it could be more or less depending on future developments.

The governor also mentioned that November inflation is expected to remain within the target band and that typhoon damage may affect December's data.