BSP still seen cutting 75-bps in 2026 as inflation stays within target

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) is likely to deliver as much as 75 basis points (bps) in rate cuts next year as inflation remains within target and global trade headwinds persist, according to Metrobank’s latest outlook.

In a report titled “A tale of two central banks,” Metrobank Chief Economist Nicholas Antonio Mapa said BSP Governor Eli Remolona could continue his pro-growth stance in 2026, bringing the policy rate down to as low as 4.25 percent by end-2026 from its current 5.0 percent level “While much still depends on what the Fed does in the coming months, we could still see BSP lowering policy rates to as low as 4.25 percent by the end of 2026,” Mapa said, noting that easing would provide “commensurate support for the economy amid a challenging landscape.” The central bank’s policymaking Monetary Board cut key interest rates for a third straight meeting last month to 5.0 percent.