BSP cuts policy rate, a first in almost 4 years

The Bangko Sentral ng Pilipinas (BSP) on Thursday cut its policy rate by 25-basis points (bps), kicking off an easing cycle amid expectations of softer inflation.

The decision of the Monetary Board, the highest policymaking body of the BSP, reduced the key rate to 6.25 percent.

The last time that the central bank cut the policy rate was way back on Nov. 19, 2020, when the pandemic-induced recession prompted the BSP to bring down borrowing costs to a record low.

READ: BSP urged to avoid ‘off-cycle’ easing