BSP to cut rates by 25bps to 5.5% on Feb 13

The Bangko Sentral ng Pilipinas (BSP) is expected to cut the target reverse repurchase rate by 25 basis points to 5.5% on February 13, marking the fourth consecutive meeting of rate cuts since August.

This decision follows recent economic indicators showing within-target inflation and weaker-than-expected GDP growth in the Philippines.

The central bank has already reduced borrowing costs by a total of 75 basis points in 2024, with the latest reduction set to continue this trend.

Analysts cite these factors as key reasons for the anticipated cut, noting that further easing may be considered but at a more moderate pace due to persisting risks and global uncertainties.

The BSP's actions reflect its commitment to maintaining monetary policy flexibility while supporting economic stability in the face of ongoing challenges.