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The Gist
News and Features
Global Philippines Fine Living
Insights
INVESTMENT STRATEGY
Economy Stocks Bonds Currencies
THE BASICS
Investment Tips Explainers Retirement
Webinars
2024 Mid-Year Economi Briefing, economic growth in the Philippines
2024 Mid-Year Economic Briefing: Navigating the Easing Cycle
June 21, 2024
Investing with Love
Investing with Love: A Mother’s Guide to Putting Money to Work
May 15, 2024
retirement-ss-3
Investor Series: An Introduction to Estate Planning
September 1, 2023
View All Webinars
Downloads
economy-ss-9
Economic Updates
Quarterly Economic Growth Release: 5.4% Q12025
May 8, 2025 DOWNLOAD
investment-ss-3
Economic Updates
Policy rate views: Uncertainty stalls cuts
May 8, 2025 DOWNLOAD
grocery-2-aa
Economic Updates
Inflation Update: BSP poised for a string of rate cuts as inflation cools
May 6, 2025 DOWNLOAD
View all Reports
Economy 2 MIN READ

BSP Update: BSP chooses baby steps once more  

Policymakers continued to deploy economic support and there is space to do more.

April 10, 2025By Metrobank Research     
banko

In line with Metrobank’s expectations, the Bangko Sentral ng Pilipinas (BSP) finally resumed its rate-cut cycle after a pause in February.

With much uncertainty still around  as the tariff war drags on, concerns over dampened global economic growth are emerging. Now all eyes are on central banks, including the BSP.

Key points

  • The BSP reduced its target Reverse Repurchase (RRP) rate by 25 basis points (bp) to 5.50% in its April 10 meeting.
  • According to the BSP, the projected global economic slowdown amid the ongoing trade war could affect the Philippine economy. This prompted the BSP to lower its policy rate.
  • The BSP revised its risk-adjusted forecasts downward to 2.3% and 3.3%, respectively, for 2025 and 2026. They also introduced the risk-adjusted forecast for 2027 at 3.2%.

Moving forward

  • Metrobank maintains its forecast of a cumulative 50-bps worth of cuts this year, with an increasing possibility of an additional 25-bp cut toward the end of the year given domestic and global economic conditions.
  • With the now lower interest-rate differential at 100 bps, the USD/PHP may be pressured in the near term. However, we still expect the USD/PHP to settle at 57.7 by end-2025.

(Disclaimer: This is general investment information only and does not constitute an offer or guarantee, with all investment decisions made at your own risk. The bank takes no responsibility for any potential losses.)     

Download our report below.

ECONOMIC UPDATES   

Policy Rate Updates: BSP chooses baby steps once more

Monetary authorities have space to further support the economy

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