📷BSP Gov. Eli Remolona
Bangko Sentral ng Pilipinas’ (BSP) Monetary Board said on Thursday, February 13, that it had maintained its benchmark interest rate at 5.75%, citing balanced inflation risks and heightened global economic uncertainty.
The interest rates on the overnight deposit and lending facilities also remain unchanged at 5.25% and 6.25%, respectively.
“The latest inflation forecasts are broadly unchanged from our previous projections in December,” BSP Governor Eli Remolona said in a briefing. “For 2025, the risk-adjusted inflation forecast has slightly risen to 3.5% from 3.4%, while the 2026 forecast remains at 3.7%.”
The central bank noted that inflation expectations remain within the government’s target range of 2% to 4%. However, potential price pressures from the utility sector could exert upward pressure on inflation, while lower import tariffs on rice continue to pose a downside risk.
“The Monetary Board acknowledges that domestic growth prospects remain firm,” Remolona said.
“However, uncertainty over global economic policies and their impact on the domestic economy has increased significantly,” he added.
Given these considerations, the BSP deemed it prudent to maintain its current monetary policy stance.
BSP said it will closely monitor global policy developments and their potential effects on the domestic economy before adjusting interest rates further.
Looking ahead, the BSP signaled a gradual shift toward a less restrictive policy stance while ensuring price stability.
The decision comes as markets watch for signals on when the BSP may begin easing rates, particularly amid a global trend of central banks recalibrating policies in response to evolving economic conditions. (TCSP)
