The Bangko Sentral ng Pilipinas (BSP) said Thursday its Monetary Board reduced the overnight borrowing rate by 25 basis points to 5.0 percent on broadly unchanged inflation outlook.
It also cut the overnight deposit and lending facilities to 4.5 percent and 5.5 percent, respectively.
The BSP kept its 2025 inflation forecast at 1.7 percent. The forecasts stand at 3.3 percent for 2026 and at 3.4 percent for 2027.
“Inflation expectations also remain well-anchored. Meanwhile, possible electricity rate adjustments and higher rice tariffs could raise inflationary pressures over the policy horizon,” it said.
The Monetary Board said domestic demand has held firm, but the impact of US policies on global trade and investment continue to weigh on global economic activity. “This could temper the outlook for the Philippine economy,” it said.
“Emerging risks will continue to require close monitoring. The Monetary Board will determine the monetary policy response based on the evolving outlook for inflation and growth,” the BSP said.
The BSP said it would safeguard price stability by ensuring monetary policy settings are conducive to sustainable economic growth and employment.
 cut its key interest rate by 25 basis points to 5% to support sustainable economic growth while managing inflation.%%excerpt%%){kind=link}