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February 2025

Monetary Policy Report


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Monetary Policy Report Archives

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The Monetary Policy Report (MPR) serves as the flagship BSP publication on monetary policy. The MPR provides the public a detailed view of the BSP's inflation forecast and guidance on the likely direction of monetary policy over the near term.

Monetary policy highlights - February 2025
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At its monetary policy meeting today, 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.
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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.
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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.
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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.