At its monetary policy meeting Thursday, the Monetary Board decided to reduce the BSP’s Target Reverse Repurchase (RRP) Rate by 25 basis points to 5.0 percent.

The interest rates on the overnight deposit and lending facilities were adjusted to 4.5 percent and 5.5 percent, respectively.

The outlook for inflation is broadly unchanged. The inflation forecast for 2025 settled at 1.7 percent. The forecasts stand at 3.3 percent for 2026 and at 3.4 percent for 2027. Inflation expectations also remain well-anchored.

Meanwhile, possible electricity rate adjustments and higher rice tariffs could raise inflationary pressures over the policy horizon.

The Monetary Board observed that domestic demand has held firm.

However, the impact of US policies on global trade and investment continue to weigh on global economic activity. This could temper the outlook for the Philippine economy.

Emerging risks will continue to require close monitoring. The Monetary Board will determine the monetary policy response based on the evolving outlook for inflation and growth.

Going forward, the BSP will safeguard price stability by ensuring monetary policy settings are conducive to sustainable economic growth and employment. Bangko Sentral ng Pilipinas