Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona said the Monetary Board may ease policy rate by at least 50 basis points (bps) this year.

On the sidelines of the BSP Media Information Session (MIS), Remolona said the size and timing of the rate cut could be 25bps each in the first and second half of 2025.

“I think that sounds about right -- 25 (bps by) first half, (and another) 25 (bps in the) second half,” he told reporters.

The BSP chief added that a 75bps rate cut “might be too much” this year as the country may still need policy insurance against inflation.

“We don't need as much of an insurance policy in our case. We don’t see a spike in inflation for the rest of the year. I think we will still be within our target range,” Remolona said.

Aside from cutting the benchmark rate, Remolona said a 200bps reduction in reserve require ratio is also in the discussion table. Easing could be done by the middle of the year. 

PNA PHOTO