MANILA -- Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona said Tuesday the Monetary Board could further cut policy rates in the next monetary policy meeting in December.

At the sidelines of the BSP-IMF Systemic Risk Dialogue in Cebu, Remolona told reporters another 25 basis point cut was possible before the year ends, and about 100bps rate cut in total next year.

“We are still in the easing cycle. Either we cut in December or in the next meeting. Pero dahan-dahan lang (But we will do it slowly),” Remolona said, asserting that there was no bad news so far.

The Philippine central bank chief however said they would wait for the inflation number in November, but he was also optimistic for the fourth quarter growth of the country.

The key policy rate was slashed by 25 basis points in October, following an initial 25 bps cut in August, which was the first cut in nearly four years.

In October, the BSP’s Target Reverse Repurchase Rate or policy rate was at 6 percent from 6.50 percent a year ago.

Bangko Sentral cuts benchmark rate by 25 basis points

Inflation quickened to 2.3 percent in October, faster than the 1.9 percent seen in September. 

The slower inflation has allowed the BSP to cut interest rates by a cumulative 50 basis points so far this year. 

But it said the balance of risks to the outlook for 2025 and 2026 has shifted toward the upside. 

The BSP said higher electricity rates and higher minimum wages in areas outside Metro Manila could drive prices upward, while lower import tariffs on rice could help keep costs under control.

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