Monetary Board Reduces Target RRP Rate by 25 Basis Points

At its monetary policy meeting today, the Monetary Board decided to reduce the Bangko Sentral ng Pilipinas’ (BSP) Target Reverse Repurchase (RRP) Rate by 25 basis points to 4.50 percent.

The interest rates on the overnight deposit and lending facilities were adjusted to 4.00 percent and 5.00 percent, respectively.

The inflation outlook remains benign, and inflation expectations remain firmly anchored.

The inflation forecasts for 2026 and 2027 have risen slightly to 3.2 percent and 3.0 percent, respectively.

The Monetary Board noted that the outlook for domestic economic growth has weakened further.

Overall business sentiment has continued to decline on concerns about governance issues and lingering uncertainty over global trade policy.

Nevertheless, domestic demand is expected to rebound slowly as the full impact of monetary policy easing works its way through the economy and as the pace and quality of public spending improve.

On balance, the Monetary Board sees the monetary policy easing cycle nearing its end.

Any additional easing will likely be limited and will be guided by incoming data.

Looking ahead, the BSP will ensure that overall policy settings remain consistent with maintaining price stability conducive to sustainable economic growth.