Archive

October 09, 2025
PH.png

BSP Delivers Unexpected Policy Easing

  • BSP cut rates 25bp to 4.75% surprising market expectations for a pause, citing a weakened growth outlook from infrastructure governance concerns.
  • Benign inflation at 1.7%, well below the 2-4% target, provides scope for accommodation despite electricity and rice tariff upside risks.
  • Further easing is likely in December as BSP signals the policy "sweet spot" is lower than expected amid persistent growth headwinds.
August 28, 2025
PH.png

BSP Cuts to 5% in "Goldilocks" Zone

  • BSP cut rates by 25bp to 5.0%, meeting consensus expectations and bringing total easing to 150bp since the cycle began one year ago.
  • A further 25bp cut is likely by December, targeting a terminal rate of 4.75% as inflation remains well below the 2-4% target range.
  • US tariff uncertainty weighs on outlook, but the BSP signals a slightly less dovish stance as policy approaches a "Goldilocks zone" sweet spot.
June 19, 2025
PH.png

Philippines: 25bp Rate Cut to 5.25% (Consensus 5.25%) in Jun-25

  • The Bangko Sentral Ng Pilipinas (BSP) reduced its Target RRP Rate by 25 basis points to 5.25%, a move that aligned with consensus forecasts and was prompted by a sharply lower inflation outlook for 2025.
  • The decision reflects growing concerns over a global economic slowdown, persistent US trade policy uncertainty, and a widening domestic output gap, all of which argue for a more accommodative monetary stance.
  • Future rate decisions will hinge on inflation dynamics, external policy shifts—especially from the US Federal Reserve—and the effectiveness of monetary easing in supporting domestic growth without compromising price stability
April 10, 2025
PH.png

Philippines: 25bp Rate Cut to 5.5% (Consensus 5.5%) in Apr-25

  • The BSP cut its policy rate by 25bps to 5.50%, aligning with expectations and marking a shift towards accommodation following the unexpectedly hawkish February hold.
  • Substantial downward revisions to inflation forecasts, with 2025 inflation now seen at just 2.3%, support the easing decision and suggest scope for further rate reductions.
  • Despite a dovish tilt, the BSP signalled a cautious, data-driven approach to additional cuts, with external headwinds and inflation risks dictating the pace of monetary easing.

By country