Benise Balaoing

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

Article (news)

Bangko Sentral ng Pilipinas

ABS-CBN News

MANILA -- The Bangko Sentral ng Pilipinas may cut interest rates by a total of 50 basis points this year, Metrobank said Wednesday.Metrobank Research said it sees the BSP cutting the reverse repurchase rate to 4 percent by the end of 2026, as inflation settled to <a href="https://www.abs-cbn.com/news/business/2026/1/6/inflation-quickens-to-1-8-percent-in-december-0906" rel="noopener noreferrer" target="_blank">1.7 percent</a>--below the government&#x27;s target of 2 to 4 percent--in 2025.It noted, however, that inflation may climb to about 3.3 percent this year, mainly because of base effects.&quot;Demand-side pressure will manifest in a pickup of inflation figures next year,&quot; Metrobank said. &quot;This could be exacerbated by higher import costs associated with higher tariffs and weaker peso moving forward.&quot;The BSP cut its benchmark rate by another 25 basis points to <a href="https://www.abs-cbn.com/news/business/2025/12/11/bangko-sentral-cuts-benchmark-rate-by-another-25-basis-points-to-4-5-percent-1435" rel="noopener noreferrer" target="_blank">4.5 percent</a> in December. The bank also noted that the Philippine economy may further improve this year. &quot;As the BSP moves policy rates to neutral in 2026 and the investment environment improves, investment activity is expected to pick up,&quot; Metrobank said. &quot;Private consumption should also improve with anticipated increases in direct cash transfers from the government in lieu of the budget initially allocated for public construction,&quot; it added.Philippine economic managers have cut the country&#x27;s economic growth target to <a href="https://www.abs-cbn.com/news/business/2026/1/5/philippines-cuts-2026-growth-target-to-5-to-6-percent-1539" rel="noopener noreferrer" target="_blank">5 to 6 percent</a> for 2026.

The Bangko Sentral ng Pilipinas may cut interest rates by a total of 50 basis points this year, Metrobank said.

The Bangko Sentral ng Pilipinas may cut interest rates by a total of 50 basis points this year, Metrobank said.

BSP seen cutting rates by 50 bps in 2026: Metrobank

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BSP seen cutting rates by 50 bps in 2026: Metrobank

Benise Balaoing,

ABS-CBN News

Published January 07, 2026 05:27 PM PHT

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interest rates

Bangko Sentral ng Pilipinas

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