Overview
- The Bangko Sentral ng Pilipinas lowered its benchmark by 25 basis points to a three-year low of 4.5%.
- Policy guidance flagged that the easing cycle is close to finishing and any further cuts will be limited and data‑dependent.
- Inflation averaged 1.6% in 2025, below target, which the central bank says has reduced price risks.
- Growth is expected at 4%–5% this year, missing the government’s 5.5%–6.5% goal as an infrastructure corruption scandal restrains public spending and investor confidence.
- The move matched expectations of most economists, bringing cumulative easing to about 200 bps, while Capital Economics still projects two more 25 bp cuts in 2026.