BSP Signals Policy Easing, Inflation Seen Within Target

​The Bangko Sentral ng Pilipinas (BSP) has signaled to investors and analysts in Milan, Italy that it is considering more interest rate cuts amid a favorable inflation outlook, which supports investment and growth.

​“Moving forward, the Monetary Board will be assessing if there is room to continue the shift to a more accommodative stance,” Deputy Governor Zeno Ronald R. Abenoja said during the Philippine Economic Dialogue (PED) held on 06 May 2025. “It will help support consumption moving forward. It will help investment activities. It will help credit activity to spur and support economic activity,” he added.
 
The BSP has cut its policy interest rate by 100 basis points starting August last year amid a manageable inflation environment. Based on its estimates for this year up to 2027, inflation will stay within the target range of 2.0-4.0 percent.
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The BSP joined government economic agencies in promoting the Philippines as a prime investment destination. The country is expected to maintain its position among Asia’s fastest-growing economies.

Also present at the PED were Economy, Planning, and Development Secretary Arsenio M. Balisacan, Budget and Management Secretary Amenah F. Pangandaman, Agriculture Undersecretary Asis G. Perez, Finance Undersecretary and Chief Economist Domini SD. Velasquez, and Asian Development Bank (ADB) Deputy Director General for Southeast Asia Pavit Ramachandran. Monetary Board Member Walter C. Wassmer also attended.

Secretary Balisacan delivered the keynote message, outlining the Philippines’ unique value proposition.

“The Philippines is not only one of Asia’s most promising investment destinations but also a strategic choice for global investors seeking resilience and growth amid global turmoil. Strong fundamentals, continuing reforms, a young and skilled workforce, and a strategic location make the Philippines your partner of choice,” Secretary Balisacan said.

Philippine Ambassador to Italy H.E. Nathaniel G. Imperial echoed this message, inviting European investors to consider the Philippines in their diversification strategies.

Citing the country’s young consumer market and prime location at the heart of the Indo-Pacific, the Ambassador said, "It’s a smart move for European economies, including Italy, to consider the Philippines as part of their de-risking and diversification strategies.”

The high-level dialogue brought together around 100 senior Italian business leaders from sectors such as finance, infrastructure, manufacturing, and trade. The discussion focused on emerging opportunities in the Philippines.

In his closing remarks, ADB Director General Winfried F. Wicklein said, “There’s never been a more exciting time to invest in the Philippines. Investors, come to the Philippines,” he said.

The PED was organized by the BSP, Department of Finance, ADB, Italian Chamber of Commerce in the Philippines, Philippine Embassy in Italy, Philippine Consulate General in Milan, and the Philippine Trade and Investment Center in Paris.