At its monetary policy meeting Thursday, the Monetary Board decided to keep the BSP’s Target Reverse Repurchase Rate at 5.75 percent.

The interest rates on the overnight deposit and lending facilities thus remain at 5.25 percent and 6.25 percent, respectively.

The latest inflation forecasts are not materially different from the previous forecasts in December.

For 2025, the risk-adjusted inflation forecast rose to 3.5 percent from 3.4 percent in the previous meeting. The risk-adjusted forecast for 2026 is unchanged at 3.7 percent. Inflation expectations remain within the target range.

The risks to the inflation outlook have become broadly balanced for 2025 and 2026. Nonetheless, upside pressures are seen to come from the utilities sector. The impact of lower import tariffs on rice remains the main downside risk to inflation.

The Monetary Board noted that domestic growth prospects continue to be firm. However, uncertainty over global economic policies and their impact on the domestic economy has increased significantly.

On balance, uncertainty about the outlook for inflation and growth warrant keeping monetary policy settings steady.

Before deciding on the timing and magnitude of further reductions in the policy interest rate, the Monetary Board deems it prudent to await further assessments of the impact of global policy uncertainty and the potential effects of the actual policies.

Looking ahead, the BSP anticipates continuing its measured shift to less restrictive monetary policy settings, even as previous policy adjustments further work their way through the economy.

The BSP will remain data-dependent in ensuring price stability conducive to sustainable economic growth and employment. Bangko Sentral ng Pilipina