Philippine central bank says two more 25 bps rate cuts possible this year
It expects inflation would likely moderate further in September
THE Philippine central bank signalled on Wednesday (Sep 25) it could cut its benchmark interest rate by 25 basis points at each of its final two meetings of the year as inflation slows, having already lowered rates last month.
“We have a policy meeting in October and another in December, so 25-25 is possible in principle,” Bangko Sentral ng Pilipinas (BSP) governor Eli Remolona told reporters.
He said inflation would likely moderate further in September from the 3.3 per cent annual pace in August.
Remolona’s remarks followed Finance Secretary Ralph Recto’s comments on Tuesday that the BSP could match the US Federal Reserve’s 50 basis point rate cut.
The BSP cut its benchmark borrowing rate by 25 basis points to 6.25 per cent in August, its first rate cut since November 2020. REUTERS
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