Inflation Surprise Backs Philippine Central Banker’s Easing Plan
- BSP Governor Remolona sees key rate at around 4.5% by end-2025
- Philippine inflation rate falls to four-year low in September
The Philippines will likely use quarter-point moves to slash its benchmark interest rate by around 175 basis points through 2025, according to Governor Eli Remolona, as a shock slowing of inflation backed his case for further easing.
A 25 basis-point cut is on the cards for the Oct. 16 policy meeting, followed by a reduction of the same size in December, Remolona said in an interview Thursday. The Bangko Sentral ng Pilipinas is unlikely to resort to half-point cuts unless the nation’s economic growth “turns out to be worse than we thought,” he added.