The Monetary Board reduced the BSP’s target reverse repurchase rate by 25 basis points to 5.25 percent during the 19 June 2025 monetary policy meeting. The rates on the overnight deposit and lending facilities were correspondingly adjusted to 4.75 percent and 5.75 percent, respectively. Read more

The inflation outlook moderates over the near term. Inflation is seen to remain below the target range through Q4 2025. Compared with the previous round, the 2025 inflation projection is significantly lower. Contributing to the decline are lower domestic food prices, particularly rice, and lower global oil prices. Read more

Headline inflation continued to moderate in May, settling at 1.3 percent, which is below the target range of 2.0–4.0 percent. The easing was mainly driven by declines in electricity rates and domestic petroleum prices, which helped reduce non-food inflation. Meanwhile, food inflation remained subdued and unchanged at 0.7 percent. Rice prices sustained their decline, supported by lower international prices, ample supply from the ongoing dry season harvest, and direct government interventions to stabilize prices. Read more

The Bangko Sentral ng Pilipinas (BSP) produces a set of inflation and macroeconomic forecasts for each monetary policy meeting, drawing from the latest data, its workhorse macroeconomic models, and the collective judgment of its technical staff and management. Read more

Monitoring inflation trends is essential for central banks, particularly those operating under an inflation-targeting framework, such as the Bangko Sentral ng Pilipinas (BSP). Recent advances in sentiment analysis and natural language processing have enabled innovative approaches to track inflation using real-time data sources, including point-of-sale transactions, online retail websites, internet searches, social media posts, and news articles. Read more

Uncertainty has emerged at the forefront of the global economic landscape following the announcement of new tariff measures by the United States (US) and countermeasures from its trading partners. Although a 90-day tariff pause and prospects of bilateral negotiations provided partial relief to global financial markets, this relief may only be temporary. Ongoing geopolitical tensions in the Middle East are also seen to increase global uncertainty further. As shown in Figure 1, record-high levels of economic and trade policy uncertainty in the US, as well as global economic policy uncertainty, were observed starting in late 2024. Read more