BSP further eases interest rates in April
MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) Monetary Board cut its key interest rate by 25 basis points.
In a briefing on Thursday, April 10, BSP Governor Eli Remolona announced that the policy rate was reduced to 5.50% from 5.75%, the level set during its last meeting in February.
Following the adjustment, the rates for the overnight deposit and lending facilities were also revised to 5.00% and 6.00%, respectively.
The BSP said the rate cut was prompted by easing inflation risks, allowing for “a shift toward a more accommodative monetary policy stance.”
“Inflation expectations also remain within target,” the central bank said.
“Looking ahead, the BSP will continue to take a measured approach in deciding on further monetary easing,” it added.
Upside pressures may still come from a possible increase in transport and meat prices, along with utility rates, according to the BSP.
Meanwhile, the central bank also noted that the downside risks are the continuing effects of lower tariffs on rice imports and the “expected impact of weaker global demand.”
“The Monetary Board noted the more challenging external environment, which would dampen global GDP growth and pose a downside risk to domestic economic activity,” the BSP said in a statement.
Risk adjusted inflation forecast. The latest inflation forecasts released after today's monetary policy meeting have shown a significant decline compared to the projections made in February.
The risk-adjusted inflation forecast for 2025 has fallen sharply from 3.5% to 2.3%, while the forecast for 2026 has also decreased from 3.7% to 3.3%.
The risk-adjusted inflation forecast for 2027 remains at 3.25%.
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