CEBU — The Bangko Sentral ng Pilipinas (BSP) on Tuesday, November 19, remains open to cutting its policy rate by 25 basis points (bps) during its December meeting, continuing its cautious easing cycle.
This comes amid global uncertainties and mixed economic signals, including the recent reelection of former U.S. President Donald Trump and the Philippines’ lower-than-expected third-quarter GDP growth to 5.8 percent.
BSP had earlier reduced interest rates by 25 basis points for the second consecutive meeting on October 16, lowering its benchmark rate to 6 percent, the lowest level since February 2023. The central bank is scheduled to hold its final meeting of the year on December 19.
While acknowledging global risks such as Trump’s win, BSP Governor Eli Remolona downplayed its immediate impact on local monetary policy.
“Puwede (mag-cut) sa December meeting. We’re still in the easing cycle, so either we cut in December or at the next meeting. Pero dahan-dahan lang,” Remolona told the media in a chance interview here, signaling the central bank’s measured approach to monetary policy adjustments.
When asked about the potential cut, Remolona said, “25, 25 lang. Wala pa namang masamang balita eh.”
GDP Growth Viewed as Temporary Dip
Despite the Philippines’ lower GDP growth in the third quarter from 6.4 percent in the previous quarter, Remolona expressed optimism, dismissing it as “a temporary aberration.”
“Palagay ko babawi eh. Babawi tayo,” Remolona said.
The governor also highlighted the importance of monitoring upcoming economic indicators, particularly inflation figures for November. In October, inflation was reported at 2.3%, well within the BSP’s target range.
“Iyong expectation natin nasa ano pa rin eh. Nasa target band pa rin,” he said. (TCSP)
