The IMF, in its staff report for the 2025 Article IV Consultation, said its baseline projection “incorporates another 50-basis-point reduction in the policy rate” by the first quarter of 2026. The cuts are expected to bring the real interest rate toward the lower bound of the IMF’s estimated natural rate range. The BSP’s discussion of alternative scenarios in its latest Monetary Policy Report is welcome in that regard,” the multilateral lender added. On the exchange rate, the IMF said the central bank should continue to act as a buffer against external shocks. While foreign exchange intervention may still be warranted in certain cases, the IMF cautioned against overuse.

Source: Philippine Star December 26, 2025 16:39 UTC