BSP may cut rates by 25bps at Feb 13 meeting; low inflation supports easing

Analysts expect the Bangko Sentral ng Pilipinas (BSP) to continue its rate-cutting cycle based on low inflation levels.

The Philippine Statistics Authority reported that January's headline inflation remained steady at 2.9%, within the BSP's target range of 2-4%.

Pantheon Macroeconomics predicts average annual inflation of 2.7% for 2025, with potential risks including weather disturbances and geopolitical tensions.

Despite these risks, analysts like Chinabank Research anticipate a 25 basis point rate cut by the BSP at its February 13 policy review.

BSP Governor Eli M. Remolona Jr. has indicated that another rate cut is possible this year, with a total reduction of up to 50 basis points expected.

The start of monetary easing in August last year and further anticipated cuts are expected to support economic growth and foster a conducive investment environment.