Economists expect BSP to cut rates twice more

Economists predict the Bangko Sentral ng Pilipinas (BSP) may cut key interest rates twice more in 2025 due to below-target inflation. This is driven by weak economic growth. Inflation has remained below the government's 2-4% target for four months, with June's rate at 1.4%. The BSP's forecast range was 1.1 to 1.9 percent. The potential rate cuts are supported by subdued inflation and global uncertainties, with some analysts expecting easing to continue into early 2026. The BSP has already cut rates by 125 bps since August 2024.