The facade of the Bangko Sentral ng Pilipinas, adorned with a new logo featuring a gold-colored, full-bodied Philippine eagle with wings spread upward and stars positioned above,  at the Bangko Sentral Headquarters in Quezon City on February 9, 2024.Maria Tan, ABS-CBN News

Arthur Fuentes

ABS-CBN News

<div><br/></div><p>MANILA - The Bangko Sentral ng Pilipinas is cutting its benchmark rate by another 25 basis points amid forecasts that inflation will continue to ease. </p><p>BSP Governor Eli Remolona also said that another 25 bps cut is possible in December.</p><p>The October rate cut, which is the second this year, brings the BSP&#x27;s benchmark target reverse repurchase rate to 6 percent from 6.25 percent. At the start of the year, the benchmark was at 6.5 percent. </p><p>Remolona said the Monetary Board’s decision was based on its assessment that price pressures remain manageable. </p><p>&quot;The risk-adjusted inflation forecast for 2024 eased to 3.1 percent from 3.3 percent in the previous meeting,&quot; Remolona said during the central bank press briefing. </p><p>Inflation eased to a better-than-expected 1.9 percent in September, which beat even the BSP&#x27;s forecast range of 2 percent to 2.8 percent. Remolona however said that a big reason for the lower inflation rate last month was &quot;base effects&quot; or the high base from last year, which meant that a lower rate was likely this year.</p><p>&quot;So without the negative base effects, it [inflation] would have been more like 2.8 percent, maybe,&quot; the central bank chief said. </p><p>The cumulative 50 bps reduction this year comes on the heels of the 250 bps cut in the reserve requirement ratio (RRR) for universal and commercial banks. </p><p>Another 25 bps cut in December would bring the benchmark rate to 5.75 percent. While some analysts have speculated that the BSP may implement an even larger cut of 50 bps by the end of the year, Remolona said this was unlikely.</p><div><a href="https://news.abs-cbn.com/business/2024/10/2/-jumbo-bangko-sentral-rate-cuts-seen-amid-similar-moves-by-fed-1316" rel="noopener noreferrer" target="_blank">&#x27;Jumbo’ Bangko Sentral rate cuts seen amid similar moves by Fed</a></div><p>&quot;I think what would make 50 basis points [cut] possible would be a scenario in which we see a hard landing. But otherwise, I think that&#x27;s too aggressive a cut,&quot; Remolona said. </p><p>Inflation has been on a downtrend for most of the year and has stayed within the government&#x27;s target range of 2 percent to 4 percent despite an uptick in July which saw inflation hit 4.4 percent. </p><p>However, the BSP also said that risk-adjusted inflation forecasts for 2025 and 2026 have increased slightly to 3.3 percent and 3.7 percent, respectively. This was mainly due to potential adjustments in electricity rates and higher minimum wages in areas outside Metro Manila. </p><p>Economists said that inflation is expected to stay low for the rest of the year due to a reduction in rice prices due to tariff cuts on imports of the commodity. </p><div><br/></div><div><br/></div><div><span class="fr-video fr-deletable fr-fvc fr-dvb fr-draggable" contenteditable="false" draggable="true"><iframe width="640" height="360" src="https://www.youtube.com/embed/InFIoNudELg?&amp;wmode=opaque&amp;rel=0" frameBorder="0" allowfullscreen="" class="fr-draggable"></iframe></span></div><div><br/></div>

<p>The Bangko Sentral ng Pilipinas is cutting its benchmark rate by another 25 basis points amid forecasts that inflation will continue to ease.</p>

The Bangko Sentral ng Pilipinas is cutting its benchmark rate by another 25 basis points amid forecasts that inflation will continue to ease.

Bangko Sentral cuts benchmark rate by 25 basis points | ABS-CBN

Entertainment

News

Metro.Style

Sports

More

Business

Bangko Sentral cuts benchmark rate by 25 basis points

Bangko Sentral cuts benchmark rate by 25 basis points

Arthur Fuentes,

ABS-CBN News

Published Oct 16, 2024 03:14 PM PHT

|

Updated Oct 16, 2024 03:54 PM PHT

Read More:

ABSNews

rate cut

BSP

Bangko Sentral ng Pilipinas

Eli Remolona

interest rates

loans

credit

ABS-CBN is the leading media and entertainment company in the Philippines, offering quality content across TV, radio, digital, and film. Committed to public service and promoting Filipino values, ABS-CBN continues to inspire and connect audiences worldwide.

Corporate

Investors

Governance

International Distribution

Corporate

Governance

Investors

International Distribution

NPC Seal of Registration

Privacy Policy

Terms of Service

Advertise with Us

© 2024 ABS-CBN Corporation. All Rights Reserved.

NPC Seal of Registration

Advertise with Us

Privacy Policy

Terms of Service

© 2024 ABS-CBN Corporation. All Rights Reserved.