The Bangko Sentral ng Pilipinas (BSP) held its benchmark interest rate steady at 5.75% on Thursday, pausing its easing cycle after three consecutive cuts amid global economic uncertainties.
The overnight deposit and lending rates were also maintained at 5.25% and 6.25%, respectively. BSP Governor Eli Remolona Jr. said the bank remains in an easing cycle but is taking a cautious approach due to heightened risks in global trade and policy shifts.
“Before deciding on the timing and magnitude of further reductions in the policy interest rate, the Monetary Board deems it prudent to await further assessments of the impact of global policy uncertainty and the potential effects of the actual policies,” he said.
The BSP has slightly revised its risk-adjusted inflation forecast for 2025 upwards to 3.5% from the previous 3.4%, while maintaining its 2026 forecast at 3.7%. These projections remain within the central bank’s target band of 2% to 4%. Headline inflation for January held steady at 2.9%, matching the December figure.
