CEBU, Philippines — The Philippine central bank is “still in the easing cycle” and so more interest rate cuts can be expected at upcoming meetings and into next year, its governor said on Tuesday.
The Bangko Sentral ng Pilipinas cut interest rates by 25 basis points for a second straight meeting on Oct. 16, bringing its benchmark rate to 6%, the lowest since February 2023. It will meet for the last time this year on Dec. 19.
Governor Eli Remolona told reporters that a third cut was likely either at the central bank’s December meeting or at its first meeting next year, and further rate cuts beyond that could be expected in 2025.
“We’re still in the easing cycle, so either we cut in December or we’ll cut in the next meeting,” Remolona said, adding further cuts of around 100 basis points in total could be expected.
“It’s not exact, could be bigger or lower. But that’s in the ballpark,” Remolona said.
Inflation in November will likely be within the central bank’s 2.0%-4.0% target, Remolona said, after it quickened to 2.3% in October from 1.9% the previous month.
Slowing inflation, supported by a drop in the cost of rice, has allowed the central bank to ease monetary policy.
Commenting on the peso to dollar rate, Remolona said the central bank would only intervene to smooth sharp swings.
“We don’t worry so much about whether the peso depreciates or appreciates. We worry about the pass-through effect (on consumer prices),” he said.
— Reporting by Mikhail FloresEditing by Shri Navaratnam and John Mair
