Manila: Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona said the Monetary Board may ease policy rate by at least 50 basis points (bps) this year. On the sidelines of the BSP Media Information Session (MIS) here Saturday, Remolona said the size and timing of the rate cut could be 25bps each in the first and second half of 2025.

According to Philippines News Agency, Remolona mentioned that a 75bps rate cut ‘might be too much’ this year as the country may still need policy insurance against inflation. He expressed confidence that the Philippines would not experience a spike in inflation for the rest of the year, suggesting that the inflation rate will remain within the target range.

In addition to the potential rate cuts, Remolona highlighted that a 200bps reduction in the reserve requirement ratio is also under consideration. This easing could be implemented by the middle of the year.