Manila: The Monetary Board (MB) of the Bangko Sentral ng Pilipinas (BSP) is expected to implement another interest rate reduction during its upcoming meeting on August 28. BSP Governor Eli Remolona Jr. made this announcement at the 2025 Economic Journalists Association of the Philippines Economic Forum, indicating a positive outlook for further policy easing.

According to Philippines News Agency, BSP has already reduced policy rates by a total of 125 basis points since last year, aiming to stimulate economic growth without triggering inflation. The recent cuts have adjusted the interest rates on overnight deposit and lending facilities to 4.75 percent and 5.75 percent, respectively.

Governor Remolona highlighted that, based on forthcoming data, there might be scope for two more rate reductions within the year. He also stated that inflation is predicted to reach 2 percent this year, aligning with the government’s target range of 2 percent to 4 percent. This projection positions the Philippines favorably compared to other emerging and advanced economies, which are expected to experience higher inflation rates.

The announcement comes as headline inflation decreased to a nine-year low of 0.9 percent in July, resulting in a year-to-date inflation rate of 1.7 percent. These figures underscore the BSP’s efforts to manage inflation while supporting economic growth.