Bangko Sentral ng Pilipinas Governor Eli Remolona during his presentation at the BSP Media Information Session in Baguio City on Saturday (Feb.1, 2025). Remolona said he is looking at least 50 basis points policy rate cuts this year. (PNA photo by Kris Crismundo)
Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona announced that the Monetary Board may reduce the policy rate by at least 50 basis points (bps) this year.
Speaking at the BSP Media Information Session (MIS) on Saturday, Remolona indicated that the rate cut could occur in two phases: a 25bps reduction in the first half of 2025 and another 25bps in the second half.
“That seems reasonable – 25bps in the first half and another 25bps in the second half,” he told reporters.
Remolona further noted that a 75bps reduction may be excessive, as the country still requires some policy safeguards against inflation.
“We don’t need as much of an insurance policy right now. We don’t foresee a surge in inflation for the remainder of the year, and we expect to stay within our target range,” he said.
In addition to cutting the benchmark rate, Remolona mentioned that a 200bps reduction in the reserve requirement ratio is also under consideration. This easing move could be implemented by mid-year.