BSP surprises with 25-bps rate cut to 4.75% – BusinessWorld Online
The Bangko Sentral ng Pilipinas (BSP) on Thursday cut its policy rate for a fourth straight meeting, bringing borrowing costs to its lowest in nearly three years.
The Monetary Board reduced the target reverse repurchase rate by 25 basis points (bps) to 4.75%, the lowest since November 2022.
Rates on the overnight deposit and lending facilities were also lowered by 25 bps each to 4.25% and 5.25%, respectively.
The rate cut came as a surprise as most analysts expected the BSP to keep rates unchanged.
A BusinessWorld poll conducted last week that showed 10 of 16 analysts expected the Monetary Board to pause monetary easing on Thursday, while only six analysts anticipated a 25-bp cut.
The central bank has now lowered borrowing costs by a total of 175 bps since it began its easing cycle in August 2024. It delivered three 25-bp cuts each at its last three meetings in April, June and August. — Katherine K. Chan