Manila: The average rate of the Bangko Sentral ng Pilipinas' (BSP) 28-day securities declined on Friday amid expectations of further cuts in the central bank's key rates. Data from the BSP showed the average rate fell by 1.09 basis points to 4.8099 percent from 4.8208 percent in the Jan. 9 auction.
According to Philippines News Agency, the BSP offered PHP90 billion worth of the securities and made a full award after tenders reached PHP129.8 billion. Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort attributed the lower rate to 'recent dovish signals from BSP Gov. (Eli) Remolona (Jr.) that a possible 0.25 BSP rate cut (is) on the table in February 2026.'
Ricafort also cited expectations of a reduction in the bank's reserve requirement ratio (RRR) this year, should the economic recovery take longer than expected, as another factor behind the decline. 'These could further reduce borrowing costs/financing costs, help spur greater demand for loans/credit and investments that, in turn, could help lead to faster economic/GDP (gross domestic product) growth,' he told the Philippine News Agency.
