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

Article (news)

Another rate cut possible as economy seen to grow slower this year: BSP

Jekki Pascual

ABS-CBN News

MANILA — Bangko Sentral ng Pilipinas Governor Eli Remolona Jr. said there is a chance for another rate cut in the last monetary policy meeting of the year, which will happen on December 11.However, he also clarified that this is not assured as they are still waiting for more economic data. He agreed that the odds are increasing in favor of a December rate cut due to the slowdown in the economy in the last quarter.Remolona said what he is sure of is that the economy this year has not grown as expected due to many factors, including the flood control corruption issue, which impacted government and consumer spending.“Parang bagsak tayo sa 2025. Tapos konting recovery sa 2026. And then stronger recovery by 2027,”Remolona said.The BSP chief further stated, “We all agree that for 2025, growth will be slow. We think maybe mid 4 percent, between 4 and 5 percent. But the recovery should start by 2026, maybe middle of 2026. And then we should be back on track by 2027.”Remolona also revealed that President Ferdinand Marcos Jr. is in talks with him and other economic officials on why the economy is not growing as fast as they would want.“He more or less understood why the slowdown is going on. He understood that there was a lack of confidence. And I think he understood that it&#x27;s a crisis that we shouldn&#x27;t let go to waste. So, the crisis is an opportunity for better governance,” Remolona said, referring to his conversation with the president.The central bank governor remains optimistic for next year, saying confidence is returning with the stock market has recovered and ratings agency S&amp;P has reaffirmed the positive outlook for the PhilippinesMeanwhile, Remolona said new Finance Secretary Frederick Go will take over the Monetary Board post of now Executive Secretary Ralph Recto starting January. For this month, Recto remains as the government representative to the Monetary Board.

Bangko Sentral ng Pilipinas Governor Eli Remolona Jr. said there is a chance for another rate cut in the last monetary policy meeting of the year.

Bangko Sentral ng Pilipinas Governor Eli Remolona Jr. said there is a chance for another rate cut in the last monetary policy meeting of the year.