MANILA — The Philippine central bank signaled on Wednesday it could cut its benchmark interest rate by 25 basis points at each of its final two meetings of the year as inflation slows, having already lowered rates last month.
“We have a policy meeting in October and another in December, so 25-25 is possible in principle,” Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona told reporters.
He said inflation would likely moderate further in September from the 3.3% annual pace in August.
Remolona’s remarks followed Finance Secretary Ralph Recto’s comments on Tuesday that the BSP could match the U.S. Federal Reserve’s 50 basis point rate cut.
The BSP cut its benchmark borrowing rate PHCBIR=ECI by 25 basis points to 6.25% in August, its first rate cut since November 2020.
—Reporting by Mikhail Flores; Editing by Martin Petty and John Mair
