President Ferdinand R. Marcos Jr. has received updates on the Bangko Sentral ng Pilipinas’ (BSP) monetary policy actions and the country’s economic outlook, the Presidential Communications Office (PCO) said on Wednesday.
This came after Marcos met with BSP Governor Eli Remolona Jr. at Malacañan Palace on Tuesday.
In a statement, the PCO said Remolona briefed Marcos on the Monetary Board’s (MB) decision in December 2025 to reduce the BSP’s key policy interest rate to 4.5 percent from 4.75 percent in October 2025, as part of efforts to support economic activity amid easing inflation pressures.
The MB, the BSP’s highest policymaking body, also lowered interest rates on overnight deposits to 4 percent from 4.25 percent, as well as on overnight lending facilities to 5 percent from 5.25 percent.
“In its latest monetary policy meeting, the BSP projected that economic growth would remain modest through the first semester of 2026 before a rebound in 2027 that is partly supported by earlier policy easing,” the PCO said.
The central bank likewise noted that its current monetary policy easing cycle is nearing its end, signaling a more measured approach moving forward as it continues to assess domestic and global economic conditions.
During the meeting, the World Bank’s outlook for the Philippine economy, which anticipates a recovery in growth over the next two years, was also discussed, the PCO noted.
“The World Bank projected a boost in private consumption if inflation stays low, employment remains strong, and monetary easing lowers interest rates, which would encourage businesses and households to spend and invest more,” it said.
The PCO said investment is also seen to pick up as public infrastructure projects resume and recent liberalization reforms further improve the country’s business environment.
To ensure long-term and inclusive growth, the World Bank emphasized the need for low-income and middle-income regions to continue growing faster than Metro Manila, the PCO added. (PNA)