00:00The Banco Central ng Pilipinas, or BSP, has cut its key policy rate by 25 basis points,
00:06the eighth reduction since August 2024.
00:08This brings the cumulative easing to 200 basis points,
00:12with aims to support an economy weighed down by weaker-than-expected growth,
00:16soft government spending, and lingering concerns over governance
00:20that have dampened both consumer and investor confidence.
00:23With the latest 1.5% inflation,
00:26this reinforces their view that price pressures will stay moderate,
00:30averaging 1.6% in 2025,
00:34before returning firmly within the target range of 3.2% by 2026 and 3% by 2027.
00:42The BSP further added that future policy adjustments will depend entirely on incoming data,
00:47particularly whether the slowdown in economic activity persists.
00:51For now, BSP is taking a measured step to reinforce demand
00:55at a time when inflation remains contained
00:57and global uncertainties continue to influence the country's economic outlook.
01:02The main factor would still be the governance issue.
01:07When investors and consumers feel that those issues are being addressed,
01:13then we should see some recovery.
Comments