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BSP: Philippine Central Bank Cuts Policy Rate By 25bp

BSP

Bangko Sentral ng Pilipinas (BSP) trimmed interest rates by 25bp, in line with consensus (13 analysts correctly predicted the outcome, 10 were looking for no change in rates), describing the decision as a "calibrated shift to a less restrictive policy stance."

  • Governor Remolona said that CPI inflation is expected to trend downward within the target range, the risks to the inflation outlook are tilted to the downside, while inflation expectations are anchored well. He signalled that the central bank is somewhat more confident that CPI numbers are coming down.
  • The BSP provided its latest risk-adjusted inflation forecasts over a three-year horizon:
    • 2024: +3.3% Y/Y (prev. +3.1%)
    • 2025: +2.9% Y/Y (prev. +3.1%)
    • 2026: +3.3% Y/Y

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