Marcos, BSP governor tackle reduced interest rates, economic outlook

MANILA, Philippines — President Ferdinand R. Marcos Jr. met with Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr. to discuss the latter’s recent policy action to reduce interest rates and the country’s economic outlook.

The meeting took place on Tuesday at the Malacañan Palace, the Presidential Communications Office (PCO) said on Wednesday.

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“The Monetary Board (MB), the highest policy making body of the BSP, decided last December to reduce the key policy interest rate to 4.5 percent from 4.75 percent in October 2025. The MB also lowered interest rates on overnight deposits from 4.25 percent to 4 percent, and on overnight lending facilities from 5.25 percent to 5 percent,” it read.

The PCO said the BSP expects economic growth to stay modest in the first half of 2026, then rebound in 2027, partly due to earlier policy easing.

“The MB sees its current monetary policy easing cycle as nearing its end,” the PCO press release read.

Meanwhile, the World Bank anticipates a recovery in the Philippine economic growth over the next two years.

“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,” the PCO said.

“The World Bank also expected investment to strengthen as public infrastructure projects resume and recent liberalization reforms improve the business environment,” it added.

The World Bank, according to PCO, said that low-income and middle-income regions should continue to grow faster than Metro Manila to ensure long-term and sustained growth. /gsg