BSP keeps rates steady at 5.75%, cites global uncertainties

At its first policy meeting of the year, the Bangko Sentral ng Pilipinas (BSP) unexpectedly held interest rates steady at 5.75 percent on Thursday amid rising global uncertainties over trade policies and tariffs.

Governor Eli Remolona cited the need for further assessments of the impact of these external factors before deciding on future rate cuts, as domestic growth prospects remain firm but are affected by global economic policies.

The Monetary Board adjusted its risk-adjusted inflation forecast slightly upward to 3.5% from 3.4%, indicating a balanced outlook for this year and next.

RRR (reserve requirement ratio) cuts from 7% to 5% are still planned, though the timing is under discussion with a possibility of it being sooner than expected.