Policy Rate Updates: Earlier BSP action possible with lower inflation trajectory

The Bangko Sentral ng Pilipinas (BSP) maintained its target overnight reverse repurchase (RRP) rate at 6.50% and reduced its risk-adjusted headline inflation forecast for this year and 2025 to 3.1% from 3.8% and to 3.1% from 3.7%, respectively.

Governor Remolona stated that data supports the course of a possible 25 bps cut each in the third quarter and in the fourth quarter, which could bring the year-end policy rate down to 6.0%.