By Amanda Lee
The Philippine central bank cut rates at its first meeting of the year, a widely expected move as weak growth underlines the need for more economic support.
Bangko Sentral ng Pilipinas lowered its benchmark overnight reverse repurchase rate by 25 basis points to 4.25% from 4.50% on Thursday, delivering a sixth straight round of easing. It also reduced its benchmark lending rate to 4.75% from 5.00%.
The decision was correctly predicted by 11 of the 12 economists polled by The Wall Street Journal, who cited sluggish growth and headwinds from a political scandal that has hit infrastructure spending.
The central bank has been monitoring the impact of political turmoil sparked by alleged misuse of public funds, warning that spending disruptions will likely drag on growth.
In 2025, the Philippine economy grew at its weakest pace in five years, reflecting the impact of the controversy, trade uncertainty and lingering structural issues.
Growth has undershot the BSP's expectations due to weaker domestic demand, it said on Thursday.
While the latest indicators point to a recovery in the second half of the year, growth will depend largely on how quickly confidence recovers, the central bank said.
"The monetary board will continue to be vigilant and guided by incoming information, specifically data on inflation," it added.
Write to Amanda Lee at amanda.lee@wsj.com
(END) Dow Jones Newswires
02-19-26 0159ET
