More BSP rate cuts seen as price pressures curbedMANILA, Philippines — Inflation may have surprised on the upside in December, but economists said the Bangko Sentral ng Pilipinas (BSP) still has room to continue easing this year, with some even seeing deeper rate cuts ahead as growth risks mount and price pressures remain largely contained. If realized, this could bring the country’s key policy rate down to four percent from 4.50 percent currently and raise the total easing since August 2024 to 250 basis points from 200 bps. “Our forecast is underpinned by our more cautious view on the growth outlook, which is the overriding policy consideration for BSP. “We see the scope for additional rate cuts from the BSP in the coming months given the favorable inflation outlook, with two cuts in the first half of 2026,” Neri said. Taken together, economists said December’s inflation bump does little to change the broader picture: price pressures remain manageable, growth risks are rising and monetary policy is still likely to stay supportive in the months ahead.
