Amid tame inflation and risks to economic growth from global uncertainties, the central bank has previously signalled that it will likely further lower its key policy rate this year, after 125 basis points in cumulative reductions since August 2024. The latest cut came last month, bringing the overnight target reverse repurchase rate to 5.25%, the lowest in nearly three years.
The Philippine central bank will consider lowering its key interest rate at its next policy meeting in August, according to Governor Eli Remolona, against a backdrop of slower inflation.
A reduction in the Bangko Sentral ng Pilipinas’ benchmark interest rate is “on the table” at the Aug 28 meeting, Remolona told reporters on Tuesday. Two more rate cuts, including the potential one next month, are possible, he added.
