Recto: BSP rate cut ‘very much possible’ in August

Defining the News

Finance Secretary Ralph Recto said Monday he expects the Bangko Sentral ng Pilipinas to reduce the key interest rates by August 2024.

“So it’s possible that you may have a rate cut this year, and possibly more rate cuts next year. Surely, I don’t expect interest rates to go any higher. If not, there’s time that it will start going down, maybe 150 bps in the next two years,” he said. It also maintained the interest rates on overnight deposit and lending facilities at 6.0 percent and 7.0 percent, respectively.“Potential price pressures are linked mainly to higher transport charges, food prices, electricity rates and global oil prices,” the BSP said.

Meanwhile, the risk-adjusted inflation forecast for 2025 rose to 3.7 percent from 3.5 percent previously. Inflation expectations remain well-anchored, it said.

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