Photo courtesy of Bangko Sentral ng Pilipinas.
President Ferdinand Marcos Jr. met with Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr. on Tuesday at Malacañan Palace to review the central bank’s recent interest rate decisions and the country’s economic prospects, the Presidential Communications Office (PCO) reported Wednesday.
The Monetary Board (MB), BSP’s highest policy-making body, reduced the key policy rate to 4.5 percent in December, down from 4.75 percent in October 2025. Rates on overnight deposits were lowered to 4 percent, while overnight lending facilities were cut to 5 percent.
“The MB sees its current monetary policy easing cycle as nearing its end,” the press release said, signaling that further rate cuts may be limited.
According to the PCO, the BSP expects the economy to grow modestly in the first half of 2026, with a stronger rebound anticipated in 2027, supported in part by the recent monetary easing.
The World Bank has projected a gradual recovery in Philippine economic growth over the next two years, noting that low inflation, strong employment, and lower interest rates could boost private consumption.
Public investment and infrastructure projects are also expected to strengthen, while recent economic liberalization measures may further improve the business environment, the PCO said, citing the World Bank.
The international lender emphasized that sustained growth will require faster expansion in low- and middle-income regions compared with Metro Manila to support long-term economic development.