MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) is preparing to ease monetary policy, with officials signaling a possible interest rate cut at its August 28 meeting, following signs of cooling inflation and resilient economic growth.
BSP Governor Eli Remolona said the central bank is closely monitoring July’s inflation rate, which slowed to 0.9%, the lowest since October 2019. He noted that inflation could continue to hover at the bottom of the BSP’s 2–4% target range, giving policymakers room to lower borrowing costs.
At the same time, the Philippine economy posted steady growth, with second-quarter GDP expanding by 5.5%, reinforcing the view that the country remains on a stable growth path even as price pressures ease.
Economists say a rate cut could provide relief to businesses and households, lowering borrowing costs and encouraging more lending and investment. The BSP has kept its key policy rate elevated in recent years to tame inflation, but the latest figures suggest monetary conditions may now be loosened without undermining stability.
The central bank’s decision later this month will be closely watched by markets, which are betting on the first step toward a broader easing cycle.
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