Cheyenne Suarez

Bangko Sentral cuts benchmark rate by another 25 basis points to 4.5 percent

The facade of the Bangko Sentral ng Pilipinas on February 15, 2024. Jonathan Cellona, ABS-CBN News

Article (news)

Arthur Fuentes

ABS-CBN News

<div> </div>MANILA — The Bangko Sentral ng Pilipinas cut its benchmark rate by another 25 basis points on Thursday. The BSP’s target reverse repurchase rate, which banks use to price loans, is now at 4.5 percent. The central bank has reduced interest rates by 200 basis points since it began its rate easing cycle in August last year.Benign inflation has allowed the BSP to easy monetary policy to support the country’s growth, which has been less than expected this year. The BSP said the outlook for inflation continues to be benign and inflation expectations remain firmly anchored, although inflation forecasts for 2026 and 2027 have risen slightly to 3.2 percent and 3.0 percent, respectively.&quot;The Monetary Board noted that the outlook for domestic economic growth has weakened further. Overall business sentiment has continued to decline on concerns about governance issues and lingering uncertainty over global trade policy. Nevertheless, domestic demand is expected to rebound slowly as the full impact of monetary policy easing works its way through the economy and as the pace and quality of public spending improves,&quot; the BSP said.After several rate cuts, the BSP said the Monetary Board sees the monetary policy easing cycle nearing its end. &quot;Any additional easing will likely be limited and will be guided by incoming data. Looking ahead, the BSP will ensure that overall policy settings remain consistent with maintaining price stability conducive to sustainable economic growth,&quot; the central bank said.

The BSP’s target reverse repurchase rate, which banks use to price loans, is now at 4.5 percent.

The BSP’s target reverse repurchase rate, which banks use to price loans, is now at 4.5 percent.