The Bangko Sentral ng Pilipinas (BSP) is considering further interest rate cuts as inflation in the Philippines remains within the target range, signaling a potential shift to a more accommodative monetary policy to bolster investment and economic growth.
Speaking at the Philippine Economic Dialogue (PED) in Milan, BSP Deputy Governor Zeno Ronald R. Abenoja told investors and analysts that the central bank is assessing the possibility of additional rate reductions following a series of cuts totaling 100 basis points since August 2024.
“Moving forward, the Monetary Board will be assessing if there is room to continue the shift to a more accommodative stance,” Abenoja said, emphasizing that lower interest rates would support consumption, investment, and credit activity.
The BSP projects inflation will stay within its 2.0 percent to 4.0 percent target range through 2027, a stable outlook that underpins its readiness to ease monetary policy further. This approach aligns with broader government efforts to promote the Philippines as a competitive and resilient investment hub in Asia.
The PED gathered high-level Philippine officials and Italian business leaders to discuss emerging economic opportunities in the Philippines. Economy Secretary Arsenio M. Balisacan highlighted the country’s strategic advantages, including its reform-driven governance, young workforce, and prime location in the Indo-Pacific.
ADB and other officials echoed the optimism, with ADB Director General Winfried F. Wicklein calling the current moment “an exciting time to invest in the Philippines.”
The event was co-organized by the BSP, Department of Finance, ADB, and several Philippine diplomatic and trade missions in Europe.
